Page:United States Statutes at Large Volume 95.djvu/330

 95 STAT. 304

26 USC 2045, 2046. 26 USC 2044.

Ante, p. 302. Ante, p. 303.

PUBLIC LAW 97-34—AUG. 13, 1981 (i) IN GENERAL.—Part III of subchapter A of chapter 11 is amended by redesignating sections 2044 and 2045 as sections 2045 and 2046, respectively, and by inserting after section 2043 the following new section: "SEC. 2044. CERTAIN PROPERTY FOR WHICH MARITAL DEDUCTION WAS PREVIOUSLY ALLOWED. "(a) GENERAL RULE.—The value of the gross estate shall include the

value of any property to which this section applies in which the decedent had a qualifying income interest for life. "(b) PROPERTY TO WHICH THIS SECTION APPLIES.—This section applies to any property if— "(1) a deduction was allowed with respect to the transfer of such property to the decedent— "(A) under section 2056 by reason of subsection (b)(7) thereof, or "(g) under section 2523 by reason of subsection (f) thereof, and "(2) section 2519 (relating to dispositions of certain life estates) did not apply with respect to a disposition by the decedent of part or all of such property." (ii) The table of sections for part III of subchapter A of chapter 11 is amended by redesignating the items relating to sections 2044 and 2045 as sections 2045 and 2046, respectively, and by inserting after the item relating to section 2043 the following new item: "Sec. 2044. Certain property for which marital deduction was previously allowed." (B) GIFT TAX.—

(i) IN GENERAL.—Subchapter B of chapter 11 (relating to transfers) is amended by adding at the end thereof the following new section: 26 USC 2519.

"SEC. 2519. DISPOSITIONS OF CERTAIN LIFE ESTATES. "(a) GENERAL RULE.—Any disposition of all or part of a qualifying

income interest for life in any property to which this section applies shall be treated as a transfer of such property. "(b) PROPERTY TO WHICH THIS SUBSECTION APPLIES.—This section applies to any property if a deduction was allowed with respect to the . transfer of such property to the donor— "(1) under section 2056 by reason of subsection (b)(7) thereof^ or "(2) under section 2523 by reason of subsection (f) thereof." (ii) The table of sections for subchapter B of chapter 11 is amended by adding at the end thereof the following new item: "Sec. 2519. Dispositions of certain life estates."

(4)(A) Subchapter C of chapter 11 is amended by inserting after section 2207 the following new section: 26 USC 2207A.

«SEC. 2207A. RIGHT OF RECOVERY IN THE CASE OF CERTAIN MARITAL DEDUCTION PROPERTY. "(a) RECOVERY WITH RESPECT TO ESTATE TAX.—

"(1) IN GENERAL.—If any part of the gross estate consists of property the value of which is includible in the gross estate by reason of section 2044 (relating to certain property for which marital deduction was previously allowed), the decedent's estate shall be entitled to recover from the person receiving the property the amount by which—

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