Page:United States Statutes at Large Volume 90 Part 2.djvu/380

 90 STAT. 1848

PUBLIC LAW 9 4 - 4 5 5 ~ 0 C T. 4, 1976 (2) ALLOWANCE o r UNIFTJED CREDIT.—Part II of subchapter A of

chapter 11 (relating to credits against the estate tax) is amended by inserting before section 2011 the following new section: 26 USC 2010.

" (a) GENERAL RULE. — A credit of $47,000 shall be allowed to the estate of every decedent against the tax imposed by section 2001. " (b) P H A S E - I N OP I47,000 CREDIT.—
 * «EC. 2010. UNIFIED CREDIT AGAINST ESTATE TAX.

"In the case of decedents dying in: 1977 1978 1979 1980 "(c)

Subsection (a) shall be applied by substituting for '$47,000' the following amount: $30,000 34,000 38,000 42,500

ADJUSTMENT TO CREDIT FOR CERTAIN G I F T S M A D E BEFORE

1977.—The amount of the credit allowable under subsection (a) shall be reduced by a n amount equal to 20 percent of the aggregate amount allowed as a specific exemption under section 2521 (as in effect before its repeal by the T a x Reform Act of 1976) with respect to gifts made by the decedent after September 8, 1976. " (d) L I M I T A T I O N BASED ON A M O U N T OF T A X. — The a m o u n t of the

credit allowed by subsection (a) shall not exceed the amount of the tax imposed by section 2001." 26 USC 2012.

(3) TERMINATION OF CREDIT FOR GIFF TAX.—Section 2012 (relat-

ing to credit for gift tax) is amended by a d d i n g at the end thereof the following new subsection: " (e) SECTION INAPPLICABLE TO G I F T S MADE A F T E R DECEMBER 3 1,

1976.—No credit shall be allowed under this section with respect to the amount of any tax paid under chapter 12 on any gift m a d e after December 31, 1976." 26 USC 2052.

(4) REPEAL OF SPECIFIC EXEMPTION.—Section 2052 ( r e l a t i n g to

exemption for purposes of the estate tax) is hereby repealed. (5) ADJUSTMENTS FOR GIFTS MADE W I T H I N 3 TFLARS OF DEATH.—

26 USC 2035.

Section 2035 (relating to transactions in contemplation of death) is amended to read as follows: "SEC. 2035. ADJUSTMENTS FOR GIFTS MADE WITHIN 3 YEARS OF DECEDENTS DEATH. " (a) INCLUSION OP G I F T S MADE BY D E C E D E N T. — E x c e p t as provided

in sul«ection (b), the value of the gross estate shall include the value of all property to the extent of any interest therein of which the decedent has a t any t i m e made a transfer, by t r u s to r otherwise, during the 3-year period ending on the date of the decedent's death. " (b) EXCEPTIONS.—Subsection (a) shall not apply to — " (1) any bona fide sale for an adequate and full consideration in money or money's worth, and " (2) any gift excludable in computing taxable gifts by reason of section 2503(b) (relating to $3,000 annual exclusion for purposes of the gift tax) determined without regard to section 2513 (a). " (c) INCLUSION OF G I F T T A X ON CERTAIN G I F T S M A D E D U R I N G 3 YEARS BEFORE DECEDENT'S D E A T H. — The a m o u n t of the gross estate

(determined without regard to this subsection) shall be increased by the amount of any tax paid under chapter 12 by the decedent o r h i s estate on any gift made by the decedent or his spouse after DeoC'm-

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