Page:United States Statutes at Large Volume 90 Part 2.djvu/419

 PUBLIC LAW 94-455—OCT. 4, 1976

90 STAT. 1887

"(e) LIMITED POWER TO APPOINT AMONG LINEAL DESCENDANTS OF GRANTOR NOT TAKEN INTO ACCOUNT IN CERTAIN CASES.—For purposes

of this chapter, if any individual does no^ have any present or future power in the trust other than a power to dispose of the corpus of the trust or the income therefrom to a beneficiary or a class of beneficiaries who are lineal descendants of the grantor assigned to a generation younger than the generation assignment of such individual, then such individual shall be treated as not having any power in the trust. "(f) EFFECT OP ADOPTION.—For purposes of this chapter, a relationship by legal adoption shall be treated as a relationship by blood. "SEC. 2614. SPECIAL RULES. 26 USC 2614. "(a) BASIS ADJUSTMENT.—If property is transferred to any person pursuant to a generation-skipping transfer which occurs before the death of the deemed transferor, the basis of such property in the hands of the transferee shall be increased (but not above the fair market value of such property) by an amount equal to that portion of the tax imposed by section 2601 with respect to the transfer which is attributable to the excess of the fair market value of such property over its adjusted basis immediately before the transfer. If property is transferred in a generation-skipping transfer subject to tax under this chapter which occurs at the same time as, or after, the death of the deemed transferor, the basis of such property shall be adjusted in a manner similar to the manner provided by section 1023 without Ante, p. 1872. regard to subsection (d) thereof (relating to basis of property passing from a decedent dying after December 31, 1976). "(b)

NONRESIDENTS NOT CITIZENS OP THE UNITED STATES.—If the

deemed transferor of any transfer is, at the time of the transfer, a nonresident not a citizen of the United States and— "(1) if the deemed transferor is alive at the time of the transfer, there shall be taken into account only property which would be taken into account for purposes of chapter 12, or 26 USC 2501. "(2) if the deemed transferor has died at the same time as, or before, the transfer, there shall be taken into account only property which would be taken into account for purposes of chapter 11. 26 USC 2001. "(c)

DISCLAIMERS.—

"For provisions relating to the effect of a qualified disclaimer for purposes of this chapter, see section 2518. "Subchapter C—Administration "Sec. 2621. Administration. "Sec. 2622. Regulations. •SEC. 2621. ADMINISTRATION. 26 USC 2621. "(a) GENERAL RULE.—Insofar as applicable and not inconsistent

with the provisions of this chapter— "(1) if the deemed transferor is not alive at the time of the transfer, all provisions of subtitle F (including penalties) applicable to chapter 11 or section 2001 are hereby made applicable in Ante, p. 1846. respect of this chapter or section 2601, as the case may be, and "(2) if the deemed transferor is alive at the time of the transfer, all provisions of subtitle F (including penalties) applicable 26 USC 6001. to chapter 12 or section 2501 are hereby made applicable in respect of this chapter or section 2601, as the case may be. "(b) SECTIONS 6166 AND 6166A NOT APPLICABLE.—For purposes of this chapter, sections 6166 and 6166A (relating to extensions of time ^"'e. P- 1862.

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