Page:United States Statutes at Large Volume 62 Part 1.djvu/149

 80T CONG. , 2D SESS.-CH. 168 -APR. 2, 1948 119 favor of the estate of such spouse, whether or not the power is exercisable in favor of others)- "(i) such proceeds shall, for the purposes of subpara- graph (A), be considered as passing to the surviving Ante, p . 117. spouse, and "(ii) no part of such proceeds shall, for the purposes of subparagraph (B) (i), be considered as passing to Ante, p. 117. any person other than the surviving spouse. This subparagraph shall be applicable only if, under the terms of the policy, such power in the surviving spouse to appoint, whether exercisable by will or during life, is exer- cisable by such spouse alone and in all events. "(H) Limitation On Aggregate Of Deductions.- The aggregate amount of the deductions allowed under this para- graph (computed without regard to this subparagraph) shall not exceed 50 per centum of the value of the adjusted gross estate, as defined in paragraph (2). Infra. "(2) COMPUTATION OF ADJUSTED GROSS ESTATE. - "(A) General Rule.- Except as provided in subparagraph (B) of this paragraph the adjusted gross estate shall, for the purposes of paragraph (1) (H), be computed by sub- Supra. tracting from the entire value of the gross estate the aggre- gate amount of the deductions allowed by subsection (b) of 25 sac. 812 b). this section. "(B) Special Rule In Cases Involving Community Prop- erty.- I f the decedent and his surviving spouse at any time held property as community property under the law of any State, Territory, or possession of the United States, or of any foreign country, then the adjusted gross estate shall, for the purposes of paragraph (1) (H), be determined by subtracting from the entire value of the gross estate the sum of: "(i) the value of property which is at the time of the death of the decedent held as such community property; and " (ii) the value of property transferred by the decedent during his life, if at the time of such transfer the prop- erty was held as such community property; and "(iii) the amount receivable as insurance under poli- cies upon the life of the decedent to the extent purchased with premiums or other consideration paid out of prop- erty held as such community property; and "(iv) an amount which bears the same ratio to the aggregate of the deductions allowed under subsection (b) of this section which the value of the property included in the gross estate, diminished by the amount subtracted under clauses (i), (ii), and (iii) of this sub- paragraph, bears to the entire value of the gross estate. For the purposes of clauses (i), (ii), and (iii) community property (except property which is considered as community property solely by reason of the provisions of subparagraph (C) of this paragraph) shall be considered as not 'held as such community property' as of any moment of time, if, in case of the death of the decedent at such moment, such property (and not merely one-half thereof) would be or would have been includible in determining the value of his gross estate without 6US SC asl 8 (e) regard to the provisions of section 811 (e) (2). The amount (2)., I \- (2\/A t, p. 115 62 STAT.]

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