Page:United States Statutes at Large Volume 92 Part 3.djvu/294

 92 STAT. 2926

PUBLIC LAW 95-600—NOV. 6, 1978 (1) AMENDMENTS RELATING TO THE POSTPONEMENT OF THE EFFECTIVE DATE OF CARRYOVER BASIS PROVISIONS.— (A) FAIR MARKET VALUE WHERE FARM VALUATION

26 USC 1014.

26 USC 5712, 2032. 26 USC 2032.

ELECTED.—Subsection (a) of section 1014 (relating to basis of property acquired from a decedent) is amended to read as follows: "(a) IN GENERAL.—Except as otherwise provided in this section, the basis of property in the hands of a person acquiring the property from a decedent or to whom the property passed from a decedent shall, if not sold, exchanged, or otherwise disposed of before the decedent's death by such person, be— "(1) the fair market value of the property at the date of the decedent's death, or "(2) in the case of an election under either section 2032 or section 811(j) of the Internal Revenue Code of 1939 where the decedent died after October 21, 1942, its value at the applicable valuation date prescribed by those sections, or "(3) in the case of an election under section 2032.1, its value determined under such section." (B) GENERATION-SKIPPING TRANSFERS.—The second

26 USC 2614. „j

26 USC 1014. 26 USC 1023.

tence of section 2614(a) (relating to basis adjustments in connection with generation-skipping transfers) is amended to read as follows: *Tf property is transferred in a generationskipping 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— "(1) in the case of such a transfer occurring after June 11, 1976, and before January 1, 1980, in a manner similar to the manner provided under section 1014(a), and "(2) in the case of such a transfer occurring after December 31, 1979, in a manner similar to the manner provided by section 1023 without regard to subsection (d) thereof (relating to basis of property passing from a decedent dying after December 31, 1979)." (2) MINIMUM PROPERTY.—

26 USC 1023.

sen-

CARRYOVER

BASIS FOR TANGIBLE PERSONAL

(A) IN GENERAL.—Subsection (h) of section 1023 (relating to adjustment to basis for December 31, 1976, fair market value) is amended by adding at the end thereof the following new paragraph: "(3) MINIMUM BASIS FOR TANGIBLE PERSONAL PROPERTY.—

5.

26 USC 2032.

"(A) IN GENERAL.—If the holding period for any carryover basis property which is tangible personal property includes December 31, 1976, then, for purposes of determining gain and applying this section, the adjusted basis of such property immediately before the death of the decedent shall be treated as being not less than the amount determined under subparagraph (B). "(B) AMOUNT.—The amount determined under this subparagraph for any property is— "(i) the VEdue of such property (as determined with respect to the estate of the decedent without regard to section 2032), divided by "(ii) 1.0066 to the nth power where n equals the number of full calendar months which have elapsed between December 31, 1976, and the date of the decedent's death."

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