Page:United States Statutes at Large Volume 115 Part 1.djvu/103

 PUBLIC LAW 107-16-JUNE 7, 2001 115 STAT. 81 "(1) IN GENERAL.—In determining whether gain is recognized on the acquisition of property— "(A) from a decedent by a decedent's estate or any beneficiary other than a tax-exempt beneficiary, and "(B) from the decedent's estate by any beneficiary other than a tax-exempt beneficiary, and in determining the adjusted basis of such property, habilities in excess of basis shall be disregarded. "(2) TAX-EXEMPT BENEFICIARY.—For purposes of paragraph (1), the term 'tax-exempt beneficiary' means— "(A) the United States, any State or political subdivision thereof, any possession of the United States, any Indian tribal government (within the meaning of section 7871), or any agency or instrumentality of any of the foregoing, "(B) an organization (other than a cooperative described in section 521) which is exempt from tax imposed by chapter 1, "(C) any foreign person or entity (within the meaning of section 168(h)(2)), and "(D) to the extent provided in regulations, any person to whom property is transferred for the principal purpose of tax avoidance. "(h) REGULATIONS.—The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this section.". (b) INFORMATION RETURNS, ETC.— (1) LARGE TRANSFERS AT DEATH.—So much of subpart C of part II of subchapter A of chapter 61 as precedes section 6019 is amended to read as follows: "Subpart C—Returns Relating to Transfers During Life or at Death "Sec. 6018. Returns relating to large transfers at death. "Sec. 6019. Gift tax returns. "SEC. 6018. RETURNS RELATING TO LARGE TRANSFERS AT DEATH. "(a) IN GENERAL.—I f this section applies to property acquired from a decedent, the executor of the estate of such decedent shall make a return containing the information specified in subsection (c) with respect to such property. "(b) PROPERTY TO WHICH SECTION APPLIES. — "(1) LARGE TRANSFERS.— Th is section shall apply to all property (other than cash) acquired from a decedent if the fair market value of such property acquired from the decedent exceeds the dollar amount applicable under section 1022(b)(2)(B) (without regard to section 1022(b)(2)(C)). "(2) TRANSFERS OF CERTAIN GIFTS RECEIVED BY DECEDENT WITHIN 3 YEARS OF DEATH.— T h is section shall apply to any appreciated property acquired from the decedent if— "(A) subsections (b) and (c) of section 1022 do not apply to such property by reason of section 1022(d)(1)(C), and "(B) such property was required to be included on a return required to be filed under section 6019. " (3) NONRESIDENTS NOT CITIZENS OF THE UNITED STATES. — In the case of a decedent who is a nonresident not a citizen of the United States, paragraphs (1) and (2) shall be applied—

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