Page:United States Statutes at Large Volume 95.djvu/344

 95 STAT. 318

26 USC 1014.

PUBLIC LAW 97-34—AUG. 13, 1981 SEC. 425. BASIS OF CERTAIN APPRECIATED PROPERTY TRANSFERRED TO DECEDENT BY GIFT WITHIN 1 YEAR OF DEATH. (a) GENERAL RULE.—Section 1014 (relating to basis of property

acquired from a decedent) is amended by adding at the end thereof the following new subsection: "(e) APPRECIATED PROPERTY ACQUIRED BY DECEDENT BY GIFT WITHIN 1 YEAR OF DEATH.—

"(1) IN GENERAL.—In the case of a decedent dying after December 31, 1981, if— "(A) appreciated property was acquired by the decedent by gift during the 1-year period ending on the date of the decedent's death, and "(B) such property is acquired from the decedent by (or passes from the decedent to) the donor of such property (or the spouse of such donor), the basis of such property in the hands of such donor (or spouse) shall be the adjusted basis of such property in the hands of the decedent immediately before the death of the decedent. "(2) DEFINITIONS.—For purposes of paragraph (1)— "(A) APPRECIATED PROPERTY.—The term 'appreciated

property' means any property if the fair market value of such property on the day it was transferred to the decedent by gift exceeds its adjusted basis. "(B) TREATMENT OF CERTAIN PROPERTY SOLD BY ESTATE.—In

26 USC 1014 "°^26 USC 2518.

26 USC 2518 ^°^-

the case of any appreciated property described in subparagraph (A) of paragraph (1) sold by the estate of the decedent or by a trust of which the decedent was the grantor, rules similar to the rules of paragraph (1) shall apply to the extent the donor of such property (or the spouse of such donor) is entitled to the proceeds from such sale." (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to property acquired after the date of the enactment of this Act by decedents dying after December 31, 1981. SEC. 426. DISCLAIMERS. (a) IN GENERAL.—Subsection (c) of section 2518 (relating to disclaimers) is amended by adding at the end thereof the following new paragraph: "(3) CERTAIN TRANSFERS TREATED AS DISCLAIMERS.—For purposes of subsection (a), a written transfer of the transferor's entire interest in the property— "(A) which meets requirements similar to the requirements of paragraphs (2) and (3) of subsection (b), and "(B) which is to a person or persons who would have received the property had the transferor made a qualified disclaimer (within the meaning of subsection (b)), shall be treated as a qualified disclaimer." (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to transfers creating an interest in the person disclaiming made after December 31, 1981. SEC. 427. REPEAL OF DEDUCTION FOR BEQUESTS, ETC., TO CERTAIN MINOR CHILDREN.

Repeal. 26 USC 2057.

(a) IN GENERAL.—Section 2057 (relating to bequests, etc., to certain minor children) is hereby repealed. (b) CLERICAL AMENDMENT.—The table of sections for part IV of subchapter A of chapter 11 is amended by striking out the item relating to section 2057.

�