Page:United States Statutes at Large Volume 92 Part 3.djvu/297

 PUBLIC LAW 95-600—NOV. 6, 1978

92 STAT. 2929

dollar amount which is the equivalent of a pecuniary bequest." (3) USE OF FARM VALUATION PROPERTY TO SATISFY PECUNIARY

BEQUEST.—Subsection (a) of. section 1040 (relating to use of 26 USC 1040. certain appreciated carryover basis property to satisfy pecuniary bequest) is amended by inserting ^'(determined without regard to section 2032A)" after "chapter 11". 26 USC 2032A, (4) TREATMENT OF CERTAIN COMMUNITY PROPERTY.—Subsection ^^^^ ^^ *^9-

(e) of section 2032A is amended by adding at the end thereof the 26 USC 2032A. following new paragraph: "(10) COMMUNITY PROPERTY.—If the decedent and his surviving spouse at any time held qualified real property as community property, the interest of the surviving spouse in such property shall be taken into account under this section to the extent necessary to provide a result under this section with respect to such property which is consistent with the result which would have obtained under this section if such property had not been community property." (5) SUBSTITUTION OF BOND FOR PERSONAL LIABILITY OF QUALIFIED HEIR FOR THE RECAPTURE TAX WITH RESPECT TO FARM VALUATION PROPERTY.—

(A) IN GENERAL.—Paragraph (6) of section 2032A(c) is amended to read as follows:

^

"(6) LIABILITY FOR TAX; FURNISHING OF BOND.—The qualified

heir shall be personally liable for the additional tax imposed by this subsection with respect to his interest unless the heir has furnished bond which meets the requirements of subsection (e)(ll)." (B) BOND REQUIREMENTS.—Subsection (e) of section 2032A

is amended by adding at the end thereof the following new paragraph: "(11) BOND IN LIEU OF PERSONAL LIABILITY.—If the qualified

heir makes written application to the Secretary for determination of the maximum amount of the additional tax which may be imposed by subsection (c) with respect to the qualified heir's interest, the Secretary (as soon as possible, and in any event within 1 year after the making of such application) shall notify the heir of such maximum amount. The qualified heir, on furnishing a bond in such amount and for such period as may be required, shall be discharged from personal liability for any additional tax imposed by subsection (c) and shall be entitled to a receipt or writing showing such discharge." (6) EFFECTIVE DATE.—The amendments made by this subsection 26 USC 2032A shall apply to the estates of decedents dying after December 31, note. 1976. (e) AMOUNT OF SECURITY REQUIRED FOR EXTENDED PAYMENT PROVISIONS FOR CLOSELY HELD BUSINESSES.— (1) IN GENERAL.—

(A) Paragraph (2) of section 6324A(e) (defining aggregate interest amount) is amended to read as follows: "(2) REQUIRED INTEREST AMOUNT.—The term 'required interest 26 USC 6324J\^. amount' means the aggregate amount of interest which will be payable over the first 4 years of the deferral period with respect to the deferred amount (determined as of the date prescribed by 26 USC 6151. section 6151(a) for the payment of the tax imposed by chapter 26 USC 2001 et 11)." seq.

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