Page:United States Statutes at Large Volume 82.djvu/1372

 1330

PUBLIC LAW 90-630-OCT. 22, 1968

[82 STAT.

amount equal to 10 percent of the aggregate amounts which have been and will be assessed as the taxpayer's share of the expenditures by the district for such property, and if such excess is more than $500, the entire excess shall be treated as paid or incurred ratably over each of the 9 succeeding taxable years. " (2) DISPOSITION OF LAND DURING 9-YEAR PERIOD.—If paragraph

(1) applies to an assessment and the land with respect to which such assessment was made is sold or otherwise disposed of by the taxpayer (other than by the reason of his death) during the 9 succeeding taxable years, any amount of the excess described in paragraph (1) which has not been treated as paid or incurred for a taxable year ending on or before the sale or other disposition shall be added to the adjusted basis of Such land immediately prior to its sale or other disposition and shall not thereafter be treated as paid or incurred ratably under paragraph (1). " (3) DISPOSITION BY REASON OF DEATH.—If

Effective date.

Denial of exemption. 68A Stat. 16826 USC 504-

Charitable deductions, limitation.

Effective date.

64 Stat. 954, 958.

paragraph

(1)

applies to an assessment and the taxpayer dies during the 9 succeeding taxable years, any amount of the excess described in paragraph (1) which has not been treated as paid or incurred for a taxable year ending before his death shall be treated as paid or incurred in the taxable year in which he dies." (c) The amendments made by subsections (a) and (b) shall apply to assessments levied after the date of the enactment of this Act in taxable years ending after such date. SEC. 6. (a) Section 504(a) of the Internal Revenue Code of 1954 (relating to denial of exemption) is amended by inserting after the second sentence thereof the following new sentence: "Paragraph (1) shall not apply to income attributable to property transferred to a t r u ^ before January 1, 1951, by the creator of such trust, if such trust was irrevocable on such date and if such income is required to be accumulated pursuant to the mandatory terms (as in effect on such date and at all times thereafter) of the instrument creating such trust." (b) Section 681(c) of such Code (relating to limitation on charitable deduction of trusts by reason of accumulated income) is amended by inserting after the second sentence thereof the following new sentence: "Paragraph (1) shall not apply to income attributable to property transferred to a trust before January 1, 1951, by the creator of such trust, if such trust was irrevocable on such date and if such income is required to be accumulated pursuant to the mandatory terms (as in effect on such date and at all times thereafter) of the instrument creating such trust," (c) The amendments made by subsection (a) and (b) shall apply with respeot to taxable years beginning after December 31, 1953, and ending after August 16, 1954. For purposes of section 3814 and 162 (g)(4) of the Internal Revenue Code of 1939, provisions having the same effect as such amendments shall be treated as included in such sections effective with respect to taxable years beginning after Deceml)er 31, 1950. Approved October 22, 1968.

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