Page:United States Statutes at Large Volume 124.djvu/140

 124 STAT. 114 PUBLIC LAW 111–147—MAR. 18, 2010 section 6048(a)(3)(B)(ii)), the Secretary may treat such trust as having a United States beneficiary for purposes of applying this section to such transfer unless such person— ‘‘(1) submits such information to the Secretary as the Sec- retary may require with respect to such transfer, and ‘‘(2) demonstrates to the satisfaction of the Secretary that such trust satisfies the requirements of subparagraphs (A) and (B) of subsection (c)(1).’’. (b) EFFECTIVE DATE.—The amendments made by this section shall apply to transfers of property after the date of the enactment of this Act. SEC. 533. UNCOMPENSATED USE OF TRUST PROPERTY. (a) IN GENERAL.—Paragraph (1) of section 643(i) is amended— (1) by striking ‘‘directly or indirectly to’’ and inserting ‘‘(or permits the use of any other trust property) directly or indirectly to or by’’, and (2) by inserting ‘‘(or the fair market value of the use of such property)’’ after ‘‘the amount of such loan’’. (b) EXCEPTION FOR COMPENSATED USE.—Paragraph (2) of sec- tion 643(i) is amended by adding at the end the following new subparagraph: ‘‘(E) EXCEPTION FOR COMPENSATED USE OF PROPERTY.— In the case of the use of any trust property other than a loan of cash or marketable securities, paragraph (1) shall not apply to the extent that the trust is paid the fair market value of such use within a reasonable period of time of such use.’’. (c) APPLICATION TO GRANTOR TRUSTS.—Subsection (c) of section 679, as amended by this Act, is amended by adding at the end the following new paragraph: ‘‘(6) UNCOMPENSATED USE OF TRUST PROPERTY TREATED AS A PAYMENT.—For purposes of this subsection, a loan of cash or marketable securities (or the use of any other trust property) directly or indirectly to or by any United States person (whether or not a beneficiary under the terms of the trust) shall be treated as paid or accumulated for the benefit of a United States person. The preceding sentence shall not apply to the extent that the United States person repays the loan at a market rate of interest (or pays the fair market value of the use of such property) within a reasonable period of time.’’. (d) CONFORMING AMENDMENTS.—Paragraph (3) of section 643(i) is amended— (1) by inserting ‘‘(or use of property)’’ after ‘‘If any loan’’, (2) by inserting ‘‘or the return of such property’’ before ‘‘shall be disregarded’’, and (3) by striking ‘‘REGARDING LOAN PRINCIPAL’’ in the heading thereof. (e) EFFECTIVE DATE.—The amendments made by this section shall apply to loans made, and uses of property, after the date of the enactment of this Act. SEC. 534. REPORTING REQUIREMENT OF UNITED STATES OWNERS OF FOREIGN TRUSTS. (a) IN GENERAL.—Paragraph (1) of section 6048(b) is amended by inserting ‘‘shall submit such information as the Secretary may Applicability. 26 USC 643 note. 26 USC 643. Applicability. 26 USC 679 note.