Page:United States Statutes at Large Volume 115 Part 1.djvu/98

 115 STAT. 76 PUBLIC LAW 107-16—JUNE 7, 2001 Subtitle E—Carryover Basis at Death; Other Changes Taking Effect With Repeal SEC. 541. TERMINATION OF STEP-UP IN BASIS AT DEATH. 26 USC 1014. Section 1014 (relating to basis of property acquired from a decedent) is amended by adding at the end the following new subsection: "(f) TERMINATION. —This section shall not apply with respect to decedents dying after December 31, 2009.". SEC. 542. TREATMENT OF PROPERTY ACQUIRED FROM A DECEDENT DYING AFTER DECEMBER 31, 2009. (a) GENERAL RULE. —Part II of subchapter O of chapter 1 (relating to basis rules of general application) is amended by inserting after section 1021 the following new section: "SEC. 1022. TREATMENT OF PROPERTY ACQUIRED FROM A DECEDENT DYING AFTER DECEMBER 31, 2009, "(a) IN GENERAL.— Except as otherwise provided in this section— "(1) property acquired from a decedent dying after December 31, 2009, shall be treated for purposes of this subtitle as transferred by gift, and "(2) the basis of the person acquiring property from such a decedent shall be the lesser of— "(A) the adjusted basis of the decedent, or "(B) the fair market value of the property at the date of the decedent's death. "(b) BASIS INCREASE FOR CERTAIN PROPERTY. — "(1) IN GENERAL. —In the case of property to which this subsection applies, the basis of such property under subsection (a) shall be increased by its basis increase under this subsection. "(2) BASIS INCREASE. —For purposes of this subsection— "(A) IN GENERAL. —The basis increase under this subsection for any property is the portion of the aggregate basis increase which is allocated to the property pursuant to this section. "(B) AGGREGATE BASIS INCREASE.— In the case of any estate, the aggregate basis increase under this subsection is $1,300,000. "(C) LIMIT INCREASED BY UNUSED BUILT-IN LOSSES AND LOSS CARRYOVERS.—The limitation under subparagraph (B) shall be increased by— "(i) the sum of the amount of any capital loss carryover under section 1212(b), and the amount of any net operating loss carryover under section 172, which would (but for the decedent's death) be carried from the decedent's last taxable year to a later taxable year of the decedent, plus "(ii) the sum of the amount of any losses that would have been allowable under section 165 if the property acquired from the decedent had been sold at fair market value immediately before the decedent's death.

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