Page:United States Statutes at Large Volume 94 Part 1.djvu/269

 PUBLIC LAW 96-222—APR. 1, 1980

94 STAT. 219

"(C) AGGREGATE ADJUSTED CONSIDERATION MUST BE LESS

THAN VALUE.—Paragraph (1) shall not apply if the sum of— "(i) the adjusted consideration furnished by the decedent, and "(ii) the adjusted consideration furnished by the decedent's spouse, equals or exceeds the value of the interest." (B) CLERICAL AMENDMENT.—Paragraph (1) of section 2040(c) is amended by striking out "subsections (a)" and 26 USC 2040. inserting in lieu thereof "subsection (a)". (4) AMENDMENTS RELATED TO SECTION 5 14 OF THE ACT.— 92 Stat. 2883. (A) The first sentence of paragraph (3) of section 2055(e) is 26 USC 2055. amended— (i) by striking out "subparagraph (a) or (B)" and inserting in lieu thereof "subparagraph (A) or (B)", and (ii) by striking out "so that interest" and inserting in lieu thereof "so that the interest". (B) Section 514 of the Revenue Act of 1978 is amended by adding at the end thereof the following new subsection: "(c) EFFECTIVE DATES.— 26 USC 2055 "(1) FOR SUBSECTION (a).—The amendment made by subsection "°*^ (a) shall apply in the case of decedents dying after December 31, 1969. "(2) FOR SUBSECTION (b).—Subsection (b)— "(A) insofar as it relates to section 170 of the Internal Revenue Code of 1954 shall apply to transfers in trust and 26 USC 170. contributions made after July 31, 1969, and "(B) insofar as it relates to section 2522 of the Internal Revenue Code of 1954 shall apply to transfers made after 26 USC 2522. December 31, 1969." (5) AMENDMENTS RELATED TO SECTION 515 OF THE ACT.— ^2 Stat. 2884. (A) AMENDMENT OF SECTION IO40 OF THE CODE.—Section 26 USC 1040.

1040 (relating to use of certain appreciated carryover basis property to satisfy pecuniary bequest) is amended by adding at the end thereof the following new suteection: "(d) APPLICATION TO SECTION 2032A PROPERTY.—For purposes of this section, references to carryover basis property shall be treated as including a reference to property the valuation of which is determined under section 2032A." (B) PERIOD FOR WHICH SECTION 1040 APPLIES.—Notwithstanding section 515 of the Revenue Act of 1978, section 1040 of the Internal Revenue Code of 1954 (as amended by subparagraph (A)) shall apply with respect to the estates of decedents dying after December 31, 1976. (6) AMENDMENTS RELATED TO SECTION 531 OF THE ACT.— (A) Paragraph (6) of section 216(b) (relating to deduction of taxes, interest, and business depreciation by cooperative housing corporation tenant-stockholder) is amended by redesignating subparagraphs (B) and (C) as subparagraphs (C) and (D), respectively, and by striking out subparagraph (A) and inserting in lieu thereof the following new subparagraphs: "(A) IN GENERAL.—If the original seller acquires any stock of the corporation from the corporation or by foreclosure, the original seller shall be treated as a tenant-stockholder for a period not to exceed 3 years from the date of the acquisition of such stock.

26 USC 2032A.

26 USC i040 ^°Supra. 92 Stat. 2886. 26 USC 216.

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