Page:United States Statutes at Large Volume 62 Part 1.djvu/150

 120 PUBLIC LAWS-CH. 168 -APR. 2, 1948 [62 STAT. to be subtracted under clause (i), (ii),or (iii) shall not exceed the value of the interest in the property described therein which is included in determining the value of the gross estate. "(C) Same-Conversion Into Separate Property.- "(i) If during the calendar year 1942 or after the date of the enactment of the Revenue Act of 1948, property held as such community property (unless considered by Ante, p. 119. reason of subparagraph (B) of this paragraph as not so held) was by the decedent and the surviving spouse con- verted, by one transaction or a series of transactions, into separate property of the decedent and his spouse (includ- ing any form of co-ownership by them), the separate property so acquired by the decedent and any property acquired at any time by the decedent in exchange therefor (by one exchange or a series of exchanges) shall, for the purposes of clauses (i), (ii), and (iii) of subparagraph Aute, p. 119. (B), be considered as 'held as such community property'. " (ii) Where the value (at the time of such conversion) of the separate property so acquired by the decedent exceeded the value (at such time) of the separate prop- erty so acquired by the decedent's spouse, the rule in clause (i) shall be applied only with respect to the same portion of such separate property of the decedent as the portion which the value (as of such time) of such sepa- rate property so acquired by the decedent's spouse is of the value (as of such time) of the separate property so acquired by the decedent. "(3) DEFINITIO-N .-For the purposes of this subsection an inter- est in property shall be considered as passing from the decedent to any person if and only if- "(A) such interest is bequeathed or devised to such per- son by the decedent; or "(B) such interest is inherited by such person from the decedent; or "(C) such interest is the dower or curtesy interest (or statutory interest in lieu thereof) of such person as surviving spouse of the decedent; or "(D) such interest has been transferred to such person by the decedent at any time; or "(E) such interest was, at the time of the decedent's death, held by such person and the decedent (or by them and any other person) in joint ownership with right of survivor- ship; or "(F) the decedent had a power (either alone or in con- junction with any person) to appoint such interest and if he appoints or has appointed such interest to such person, or if such person takes such interest in default upon the release or nonexercise of such power; or "(G) such interest consists of proceeds of insurance upon the life of the decedent receivable by such person. Ante.p. la Except as provided in subparagraph (F) or (G) of paragraph (1), where at the time of the decedent's death it is not possible to ascertain the particular person or persons to whom an interest in property may pass from the decedent, such interest shall, for A*, p. 11. the purposes of clauses (i) and (ii) of subparagraph (B) of paragraph (1), be considered as passing from the decedent to a person other than the surviving spouse.

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