Page:United States Statutes at Large Volume 90 Part 2.djvu/440

 90 STAT. 1908

PUBLIC LAW 94-455—OCT. 4, 1976 or a related person is exported during the taxable year or the immediately preceding taxable year." (b) TRANSFER RULE.—

26 USC 613A,

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(1) IN GENERAL.—Subparagraph (B) of section 613A(c)(9) (relating to exceptions to the transfer rule) is amended by striking out "or" at the end of clause (i), by striking out the period at the end of clause (ii) and inserting in lieu thereof ", or", and by adding at the end thereof the following new clause: "(iii) a change of beneficiaries of a trust by reason of the death, birth, or adoption of any vested beneficiary if the transferee was a beneficiary of such trust or is a lineal descendant of the settlor or any other vested beneficiary of such trust, except in the case of any trust where any beneficiary of such trust is a member of the family (as defined in section 267(c)(4)) of a settlor who created inter vivos and testamentary trusts for members of the family and such settlor died within the last six days of the fifth month in 1970, and the law in the jurisdiction in which such trust was created requires all or a portion of the gross or net proceeds of any royalty or other interest in oil, §as, or other mineral representing any percentage depletion allowance to be allocated to the principal of the trust." (2) CONFORMING AMENDMENTS.—Paragraph (1) of section 613A (d) (relating to the limitation on percentage depletion based upon taxable income) is amended— (A) by striking out subparagraph (A) and inserting in lieu thereof the following: " (A) any depletion on production from an oil or gas property which is subject to the provisions of subsection (c),", (B) by striking out "and" at the end of subparagraph (B), (C) by striking out the period at the end of subparagraph (C) and inserting in lieu thereof ", and", and (D) by adding at the end thereof the following new subparagraph: "(D) in the case of a trust, any distributions to its beneficiary, except in the case of any trust where any beneficiary of such trust is a member of the family (as defined in section 267(c)(4)) of a settlor who created inter vivos and testamentary trusts for members of the family and such settlor died within the last six days of the fifth month in 1970, and the law in the jurisdiction in which such trust was created requires all or a portion of the gross or net proceeds of any royalty or other interest in oil, gas, or other mineral representing any percentage depletion allowance to be allocated to the principal of the trust." (c) PARTNERSHIP RULES.—

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(1) Subparagraph (D) of section 613A(c)(7) (relating to the computation of depletion in the case of partnerships) is amended to read as follows: "(D) PARTNERSHIPS.—In the case of a partnership, the depletion allowance shall be computed separately by the partners and not by the partnership. The partnership shall allocate to each partner his proportionate share of the adjusted basis of each partnership oil or gas property. The allocation

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