Page:United States Statutes at Large Volume 94 Part 1.djvu/288

 94 STAT. 238

PUBLIC LAW 96-223—APR. 2, 1980 "(11) PROPERTY HELD BY TRUST OR ESTATE.—Prop-

erty held by any trust or estate shall be treated as owned both by such trust or estate and proportionately by its beneficiaries. "(Ill) CONSTRUCTIVE APPLICATION.—This chapter

shall be treated as having been in effect for periods after September 30, 1979, for purposes of making any determination under subclause (I) or (II) of clause (ii). "(C) OTHER EXCEPTIONS.—Subparagraph (A) shall

26 USC 613A.

not

apply in the case of— "(i) a transfer of property at death, "(ii) a change of beneficiaries of a trust which qualifies under clause (iii) of section 613A(c)(9)(B) (determined without regard to the exception at the end of such clause), and "(iii) any transfer so long as the transferor and transferee are required by subsection (e) to share the 1,000 barrel amount contained in subsection (c)(1)(A). The preceding sentence shall apply in the case of any property only if the production from the property was qualified production for the transferor. "(D) TRANSFERS INCLUDE SUBLEASES, ETC.—For purposes of this paragraph— "(i) a sublease shall be treated as a transfer, and "(ii) an interest in a partnership or trust shall be treated as an interest in property held by the partnership or trust. "(e) ALLOCATION WITHIN RELATED GROUP.—

"(1) IN GENERAL.—In the case of persons who are members of the same related group at any time during any quarter, the 1,000 barrel amount contained in subsection (c)(1)(A) for days during such quarter shall be reduced for each such person by allocating such amount among all such persons in proportion to their respective qualified production for such quarter. "(2) RELATED GROUP.—For purposes of this subsection, persons shall be treated as members of a related group if they are described in any of the following clauses: "(A) a family, "(B) a controlled group of corporations, "(C) a group of entities under common control, or "(D) if 50 percent or more of the beneficial interest in 1 or more corporations, trusts, or estates is owned by the same family, all such entities and such family. "(3) DEFINITIONS AND SPECIAL RULES.—For purposes of this subsection— "(A) CONTROLLED GROUP OF CORPORATIONS.—The term 'controlled group of corporations' has the meaning given such term by section 613A(c)(8)(D)(i). "(B) GROUP OF ENTITIES UNDER COMMON CONTROL.—The

term 'group of entities under common control' means any group of corporations, trusts, or estates which (as determined under regulations prescribed by the Secretary) are under common control. Such regulations shall be based on principles similar to the principles which apply under subparagraph (A). "(C) FAMILY.—The term 'family' means an individual and the spouse and minor children of such individual.

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