Page:United States Statutes at Large Volume 92 Part 3.djvu/300

 92 STAT. 2932 26 USC 2503.

PUBLIC LAW 95-600—NOV. 6, 1978 2503 (relating to taxable gifts) is amended by adding at the end thereof the following new subsection: "(d) INDIVIDUAL RETIREMENT ACCOUNTS, ETC., FOR SPOUSE.—For

26 USC 408. 26 USC 409.

26 USC 2039 note. 26 USC 2503 note.

purposes of subsection (b), any payment made by an individual for the benefit of his spouse— "(1) to an individual retirement account described in section 408(a), "(2) for an individual retirement annuity described in section 408(b), or "(3) for a retirement bond described in section 409, shall not be considered a gift of a future interest in property to the extent that such payment is allowable as a deduction under section 220". (3) EFFECTIVE DATES.—

(A) The amendment made by paragraph (1) shall apply to the estates of decedents dying after December 31, 1976. (B) The amendment made by paragraph (2) shall apply to transfers made after December 31, 1976. (k) PROVISIONS RELATING TO TREATMENT OF JOINT INTERESTS.— (1) REMOVAL OF REQUIREMENT OF ACTUARIAL COMPUTATIONS FOR JOINT INTERESTS IN PERSONAL PROPERTY.—

26 USC 2511 et seq. 26 USC 2515. 26 USC 2515A.

(A) IN GENERAL.—Subchapter (B) of chapter 12 (relating to transfers for purposes of the gift tax) is amended by inserting after section 2515 the following new section: "SEC. 2515A. TENANCIES BY THE ENTIRETY IN PERSONAL PROPERTY. "(a) CERTAIN ACTUARIAL COMPUTATIONS NOT REQUIRED.—In the

case of— "(1) the creation (either by one spouse alone or by both spouses) of a joint interest of a husband and wife in personal property with right of survivorship, or "(2) additions to the value thereof in the form of improvements, reductions in the indebtedness thereof, or otherwise, the retained interest of each spouse shall be treated as one-half of the value of their joint interest. "0)) EXCEPTION.—Subsection (a) shall not apply with respect to any joint interest in property if the fair market value of the interest or of the property (determined as if each spouse had a right to sever) cannot reasonably be ascertained except by reference to the life expectancy of one or both spouses." (B) CHANGE IN SECTION 2515 HEADING.—The heading for

26 USC 2515.

26 USC 2511 et seq. 26 USC 2515.

26 USC 2515A note.

26 USC 2040.

section 2515 is amended to read as follows: 'SEC. 2515. TENANCIES BY THE ENTIRETY IN REAL PROPERTY." (C) CLERICAL AMENDMENTS.—The table of sections for subchapter B of chapter 12 is amended by striking out the item relating to section 2515 and inserting in lieu thereof the following: "Sec. 2515. Teneincies by the entirety in real property. "Sec. 2515A. Tenancies by the entirety in personal property." (D) EFFECTIVE DATE.—The amendments made by this paragraph shall apply to joint interests created after December 31, 1976. (2) EXTENSION OF FRACTIONAL INTEREST RULE TO CERTAIN JOINT INTERESTS IN REAL OR PERSONAL PROPERTY CREATED BEFORE 1977.—

Section 2040 (relating to joint interests) as amended by this Act, is further amended by adding at the end thereof the following new subsections:

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