Page:United States Statutes at Large Volume 94 Part 3.djvu/754

 94 STAT. 3398

PUBLIC LAW 96-589—DEC. 24, 1980 spouse may elect to have the debtor's election under subparagraph (A) also apply to the spouse, but only if the debtor and the spouse file a joint return for the taxable year referred to in subparagraph (A)(i). "(C)

11 USC 101 ^^ *^^-

N o ELECTION WHERE DEBTOR HAS NO ASSETS.—No

election may be made under subparagraph (A) by a debtor who has no assets other than property which the debtor may treat as exempt property under section 522 of title 11 of the United States Code. "(D) TIME FOR MAKING ELECTION.—An election under subparagraph (A) or (B) may be made only on or before the due date for filing the return for the taxable year referred to in subparagraph (A)(i). Any such election, once made, shall be irrevocable. "(E) RETURNS.—A return shall be made for each of the taxable years specified in subparagraph (A). "(F) ANNUALIZATION.—For purposes of subsections (b), (c), ' and (d) of section 443, a return filed for either of the taxable years referred to in subparagraph (A) shall be treated as a return made under paragraph (1) of subsection (a) of section 443. the case under title 11 of the United States Code to which this section applies commences. "(e) TREATMENT OF INCOME, DEDUCTIONS, AND CREDITS.— "(1) ESTATE'S SHARE OF DEBTOR'S INCOME.—The gross
 * • • "(3) COMMENCEMENT DATE DEFINED.—For purposes of this subsection, the term 'commencement date' means the day on which

income of the estate for each taxable year shall include the gross income of the debtor to which the estate is entitled under title 11 of the United States Code. The preceding sentence shall not apply to any amount received or accrued by the debtor before the commencement date (as defined in subsection (d)(3)). "(2) DEBTOR'S SHARE OF DEBTOR'S INCOME.—"The gross income of the debtor for any taxable year shall not include any item to the extent that such item is included in the gross income of the estate by reason of paragraph (1). "(3) RULE FOR MAKING DETERMINATIONS WITH RESPECT TO DEDUCTIONS, CREDITS, AND EMPLOYMENT TAXES.—Except as other-

wise provided in this section, the determination of whether or not any amount paid or incurred by the estate— "(A) is allowable as a deduction or credit under this chapter, or "(B) is wages for purposes of subtitle C, shall be made as if the amount were paid or incurred by the debtor and as if the debtor were still engaged in the trades and businesses, and in the activities, the debtor was engaged in before the commencement of the case. "(f) TREATMENT OF TRANSFERS BETWEEN DEBTOR AND ESTATE.— "(1) TRANSFER TO ESTATE NOT TREATED AS DISPOSITION.—A

transfer (other than by sale or exchange) of an asset from the debtor to the estate shall not be treated as a disposition for purposes of any provision of this title assigning tax consequences to a disposition, and the estate shall be treated as the debtor would be treated with respect to such asset. "(2) TRANSFER FROM ESTATE TO DEBTOR NOT TREATED AS DISPOSI-

TION.—In the case of a termination of the estate, a transfer (other than by sale or exchange) of an asset from the estate to the debtor shall not be treated as a disposition for purposes of any provision

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