Page:United States Statutes at Large Volume 83.djvu/589

 83

STAT. ]

PUBLIC LAW 91-172-DEC. 30, 1969

561

(B) in the case of any other interest, such interest is in the form of a guaranteed annuity or is a fixed percentage distributed yearly of the fair market value of the property (to be determined yearly)." (2) ESTATES OF NONRESIDENTS NOT CITIZENS.—Subparagraph

(E) of section 2106(a)(2) (relating to disallowance of deductions in certain cases) is amended to read as follows: "(E)

DISALLOWANCE OF DEDUCTIONS I N CERTAIN CASES.—

The provisions of section 2055(e) shall be- applied in the determination of the amount allowable as a deduction under this paragraph." (3) G I F T TAX.—Subsection (c) of section 2522 (relating to disallowance of charitable deductions in certain cases) is amended to read as follows: "(c)

68A Stat. 398. 26 USC 2106.

'^"'^' ^- ^^°

DISALLOWANCE OF DEDUCTIONS I N CERTAIN CASES.—

" (1) No deduction shall be allowed under this section for a gift to of for the use of an organization or trust described in section 508(d) or 4948 (c)(4) subject to the conditions specified in such sections. "(2) Where a donor transfers an interest in property (other than a remainder interest in a personal residence or farm or an undivided portion of the donor's entire interest in property) to a person, or for a use, described in subsection (a) or (b) and an interest in the same property is retained by the donor, or is transferred or has been transferred (for less than an adequate and full consideration in money or money's worth) from the donor to a person, or for a use, not described in subsection (a) or (b), no deduction shall be allowed under this section for the interest which is, or has been transferred to the person, or for the use, described in subsection (a) or (b), 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 " (B) in the case of any other interest, such interest is in the form of a guaranteed annuity or is a fixed percentage distributed yearly of the fair market value of the property (to be determined yearly)."

Ante, pp. 494, 518.

Post, p. 562. Ante, p. 558.

(4) P O L I T I C A L ACTIVITIES.—

(A) Section 2055(a) (relating to transfers for public, charitable, and religious uses) is amended— (i) by striking out "and" before "no substantial part " in paragraph (2), and by inserting before the semicolon at the end of such paragraph ", and which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of any candidate for public office"; and (ii) by striking out "and" before "no substantial part" in paragraph (3), and by inserting before the semicolon at the end of such paragraph ", and such trustee or trustees, or such fraternal society, order, or association, does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of any candidate for public office". (B) Section 2106(a)(2) (relating to transfers for public, charitable, and religious uses) is amended—

SSA Stat. 390

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