Page:United States Statutes at Large Volume 68A.djvu/275

 CH. 1

NORMAL TAXES AND SURTAXES

235

SEC. 683. APPLICABILITY OF PROVISIONS. (a) GENERAL RULE. — T h i s part shall apply only to taxable years

beginning after December 31, 1953, and ending after the date of the enactment of this title. (b) EXCEPTIONS.—In the case of any beneficiary of an estate or trust— (1) this part shall not apply to any amount paid, credited, or to be distributed by the estate or trust in any taxable year of such estate or trust to which this part does not apply, and (2) the Internal Revenue Code of 1939 shall apply for purposes of determining the amount includible in the gross income of the beneficiary. To the extent that any amount paid, credited, or to be distributed by an estate or trust in the first taxable year of such estate or trust to which this part applies would be treated, if the Internal Revenue Code of 1939 were applicable, as paid, credited, or to be distributed on the last day of the preceding taxable year, such amount shall not be taken into account for purposes of this part b u t shall be taken into account as provided in the Internal Revenue Code of 1939.

PART 11—INCOME IN RESPECT OF DECEDENTS Sec. 691. Recipients of income in respect of decedents. Sec. 692. Income taxes of members of Armed Forces on death. SEC. 691. RECIPIENTS OF INCOME IN RESPECT OF DECEDENTS. (a) INCLUSION I N GROSS INCOME.— (1) GENERAL RULE.—The amount of all items of gross income

in respect of a decedent which are not properly includible in respect of the taxable period in which falls the date of his death or a prior period (including the amount of all items of gross income in respect of a prior decedent, if the right to receive such amount was acquired by reason of the death of the prior decedent or by bequest, devise, or inheritance from the prior decedent) shall be included in the gross income, for the taxable year when received, of: (A) the estate of the decedent, if the right to receive the amount is acquired by the decedent's estate from the decedent; (B) the person who, by reason of the death of the decedent, acquires the right to receive the amount, if the right to receive the amount is not acquired by the decedent's estate from the decedent; or (C) the person who acquires from the decedent the right to receive the amount by bequest, devise, or inheritance, if the amount is received after a distribution by the decedent's estate of such right. (2) INCOME I N CASE OF SALE, ETC,—If a right, described in

paragraph (1), to receive an amount is transferred by the estate of the decedent or a person who received such right by reason of the death of the decedent or by bequest, devise, or inheritance from the decedent, there shall be included in the gross income of the estate or such person, as the case may be, for the taxable period in which the transfer occurs, the fair market value of such right at the time of such transfer plus the amount by which any consideration § 691(a)(2)

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