Page:United States Statutes at Large Volume 90 Part 2.djvu/404

 90 STAT. 1872

PUBLIC LAW 94-455—OCT. 4, 1976 "Sec. 6324A. Special lien for estate tax deferred under section 6166 or 6166A."

26 USC 7403. Ante, p. 1862. 26 USC 2011. 26 USC 2204.

(2) Section 7403(a) (relating to action to enforce lien or to subject property to payment of tax) is amended by a d d i n g a t the end thereof the following new sentence: " For purposes of the preceding sentence, any acceleration of payment under section 6166 (g) or 6166A(h) shall be treated as a neglect to p a y tax. " (3) Paragraph (2) of section 2011(c) (relating to credit for State death taxes) is amended by striking out "section 6161" and inserting in lieu thereof "section 6161, 6166 or 6166A". ^4^ ^he last sentence of section 2204(b) is amended by striking out " has not been extended under " and inserting in lieu thereof "has been extended under". (5) The table of sections for subchapter B of chapter 62 is amended by striking out the item relating to section 6166 and inserting in lieu thereof the following: "Sec. 6166. Alternate extension of time for payment of estate tax wtiere estate consists largely of interest in closely held business. "Sec. 6166A. Extension of time for payment of estate tax where estate tax consists largely of interest in closely held business.".

26 USC 6166 note.

(6) Subsections (a) and (b) of section 2204 (relating to discharge of fiduciary from personal liability) are as amended by striking out " o r 6166" and inserting in lieu thereof "6166 or 6166A". (g) EFFECTIVE D A T E, — The amendments made by this section shall apply to the estates of decedents d y i n g after December 31, 1976. SEC. 2005. CARRYOVER BASIS. (a) GENERAL RULE. — (1) AMENDMENT OF SECTION 1014.—Subsection (d) of section

26 USC 1014.

1014 (relating to basis of property acquired from a decedent) is amended to read as follows: " (d) DECEDENTS D Y I N G A F T E R DECEMBER 31, 1976.—In the case of a

decedent d y i n g after December 31, 1976, the section shall not apply to any property for which a carryover basis is provided by section 1023." (2) CARRYOVER BASIS.—Part II of subchapter O of chapter 1

26 USC 1024. 26 USC 1023.

(relating to basis rules of general application) is amended by redesignating section 1023 as section 1024 and by inserting after section 1022 the following new section: "SEC. 1023. CARRYOVER BASIS FOR CERTAIN PROPERTY ACQUIRED FROM A DECEDENT DYING AFTER DECEMBER 31, 1976. " (a) GENERAL RULE. —

" (1) CARRYOVER BASIS.—Except as otherwise provided in this section, the basis of carryover basis property acquired from a decedent d y i n g after December 31, 1976, in the h and s of the person so acquiring it shall be the adjusted basis of the property immediately before the death of the decedent, further adjusted as provided in this section. "(2)

L o s s ON PERSONAL AND HOUSEHOLD EFFECTS.

I n the CaSC

of any carryover basis property which, in the h and s of the decedent, was a personal or household effect, for purposes of determining loss, the basis of such property in the h and s of the person acquiring such property from the decedent shall not exceed its fair market value. " (b) CARRYOVER BASIS PROPERTY D E F I N E D. —

" (1) IN GENERAL.—For purposes of this section, the term 'carryover basis property ' means any property which is acquired from

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