Page:United States Statutes at Large Volume 83.djvu/592

 564

PUBLIC LAW 91-172-DEC. 30, 1969

[33 s^^^

" (B) any amount of the trust income which is in excess of the amount required to be distributed under paragraph (2\ (A), to the extent that (by reason of subparagraph (A)) the aggregate of the amounts paid in prior years was less than the aggregate of such required amounts. "(e)

VALUATION FOR PURPOSES or CHARITABLE CONTRIBUTIGN.—.p^j.

purposes of determining the amount of any charitable contribution the remainder interest of a charitable remainder annuity trust or charitable remainder unitrust shall be computed on the basis that an amount equal to 5 percent of the net fair market v-alue of its assets (or a greater amount, if required under the terms of the trust instrument) is to be distributed each year." (2) The table of sections for subpart C of part I of subchapter J of chapter 1 (relating to estates and trusts which may accumulate income or which distribute corpus) is amended by adding at the end thereof: "Sec. 664. Charitable remainder trusts." 68A Stat. 296.

^£^ B A R G A I N S A L E S TO C H A R I T A B L E ORGANIZATIONS.

S e c t i o U 1011

(relating to adjusted basis for determining gain or loss) is amended— (1) by striking out "The" at the beginning and inserting in lieu thereof: " (a) GENERAL RULE.—The", and

Ante, p. 549.

(2) by adding at the end thereof the following new subsection: "(b) BARGAIN SALE TO A CHARITABLE ORGANIZATION.—If a deduc^JQJ^ jg allowable under section lYO (relating to charitable contributions) by reason of a sale, then the adjusted basis for determining the gain from such sale shall be that portion of the adjusted basis which bears the same ratio to the adjusted basis as the amount realized bears to the fair market value of the property." (g)

Post, p. 643.

Ante, p. 558.

,

EFFECTIVE DATES.—

(1)(A) Except as provided in subparagraphs (B) and (C),the amendments made by subsection (a) shall apply to taxable years beginning after December 31, 1969. (B) Subsections (e) and (f)(1) of section ITO of the Internal Revenue Code of 1954 (as amended by subsection (a)) shall apply to contributions paid after December 31, 1969, except that, with respect to a letter or memorandum or similar property described in section 1221(3) of such Code (as amended by section 514 of this Act), such subsection (e) shall apply to contributions paid after July 25, 1969. (C) Paragraphs (2), (3), and (4) of section 170(f) of such Code (as amended by subsection (a)) shall apply to transfers in trust and contributions made after July 31, 1969. (D) For purposes of applying section 170(d) of such Code (as amended by subsection (a)) with respect to contributions paid in a taxable year beginning before January 1, 1970, subsection (b)(1)(D), subsection (e), and paragraphs (1), (2), (3), and (4) of subsection (f) of section 170 of such Code shall not apply(2) The amendments made by subsection (b) shall apply with respect to amounts paid, permanently set aside, or to be used for a charitable purpose in taxable years beginning after December 31, 1969, except that section 642(c)(5) of the Internal Revenue Code of 1954 (as added by subsection (b)) shall apply to transfers in trust made after July 31, 1969. (3) The amendment made by subsection (c) shall apply *^ transfers in trust made after April 22, 1969.

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