Page:United States Statutes at Large Volume 83.djvu/588

 560

PUBLIC LAW 91-172-DEC. 30, 1969

[83 STAT.

" (B) in which the property transferred by each donor is commingled with property transferred by other donors who have made or make similar transfers, " (C) which cannot have investments in securities which are exempt from the taxes imposed by this subtitle, " (D) which includes only amounts received from transfers which meet the requirements of this paragraph, • ^ >•' '" (E) which is maintained by the organization to which H;MM J:* the remainder interest is contributed and of which no donor , f* or beneficiary of an income interest is a trustee, and " (F) from which each beneficiary of an income interest receives income, for each year for which he is entitled to receive the income interest referred to in subparagraph (A) determined by the rate of return earned by the trust for such year. For purposes of determining the amount of any charitable contribution allowable by reason of a transfer of property to a pooled fund, the value of the income interest shall be determined on the basis of the highest rate of return earned by the fund for any of the 3 taxable years immediately preceding the taxable year of the fund in which the transfer is made. I n the case of funds in existence less than 3 taxable years preceding the taxable year of the fund in which a transfer is made, the rate of return shall be deemed to be 6 percent per annum, except that the Secretary or his delegate may prescribe a different rate of return. "(6) TAXABLE PRPVATE FOUNDATIONS.—In the case of a private foundation which is not exempt from taxation under section 501 (a) for the taxable year, the provisions of this subsection shall Re'e'a?* ^'*^' ^^^ ^PP^J ^^^ ^hc provisions of section 170 shall apply." 68A Stat. 227, (c) TWO-YEAR CHARITABLE TRUSTS.—Section 673(b) (relating to trusts where the income is payable to a charitable beneficiary for at least a two-year period) is repealed.

68A Stat. 3 9 1. 26 USC 2055.

(d) DISALLOWANCE OF ESTATE AND G I F T TAX DEDUCTIONS IN CERTAIN CASES.— (1) ESTATES OF CITIZENS OR RESIDENTS.—Subsection (e) of sec-

tion 2055 (relating to disallowance of charitable deductions in certain cases) is amended to read as follows: "(e)

Ante, pp. 494,

• 4

' j^:

Post, Ante,

p. 562. p. 558.

DISALLOWANCE OF DEDUCTIONS I N CERTAIN CASES.—

"(1) No deduction shall be allowed under this section for a transfer to or for the use of an organization or trust described i^ section 508(d) Or 4948(c)(4) subject to the conditions specified in such sections. "(2) Where an interest in property (other than a remainder interest in a personal residence or farm or an undivided portion of the decedent's entire interest in property) passes or has passed from the decedent to a person, or for a use, described in subsection (a), and an interest (other than an interest which is extinguished upon the decedent's death) in the same property passes or has passed (for less than an adequate and full consideration in money or money's worth) from the decedent to a person, or for a use, not described in subsection (a), no deduction shall be allowed under this section for the interest which passes or has passed to the person, or for the use, described in subsection (a) unless—.. " (A) in the case of a remainder interest, such interest is in a trust which is a charitable remainder annuity trust or a charitable remainder unitrust (described in section 664) or a pooled income fund (described in section 642(c)(5)), or

�