Page:United States Statutes at Large Volume 96 Part 2.djvu/1019

 PUBLIC LAW 97-448—JAN. 12, 1983

96 STAT. 2381

"(B) SUBPARAGRAPH (A) NOT TO APPLY AFTER TRANSFER BY

DONEE SPOUSE.—Subparagraph (A) shall not apply with respect to any property after the donee spouse is treated as having transferred such property under section 2519, or such property is includible in the donee spouse's gross estate under section 2044." (6) AMENDMENT OF SECTION 2523(f).—Paragraph (3) of section 26 USC 2523. 2523(f) (relating to certain rules made applicable) is amended by striking out "the rules o f and inserting in lieu thereof "rules similar to the rules o f. (7) CROSS REFERENCE.—Section 2519 is amended by adding at

26 USC 2519.

the end thereof the following new subsection: "(c) CROSS REFERENCE.— "For right of recovery for gift tax in the case of property treated as transferred under this section, see section 2207A(b)."

(8) TREATMENT OF ANNUITIES.—Clause (ii) of section 2056(b)(7)(B) is amended by adding at the end thereof the following new sentence: "To the extent provided in regulations, an annuity shall be treated in a manner similar to an income interest in property (regardless of whether the property from which the annuity is payable can be separately identified)." (9) CLERICAL AMENDMENT.—Paragraph (2) of section 2035(b) is amended by striking out "section 6019(a)(2)" and inserting in lieu thereof "section 6019(2)". (10) CLARIFICATION OF EFFECTIVE DATE.—Paragraph (2) of section 403(e) of the Economic Recovery Teix Act of 1981 is amended by striking out "and paragraphs (2) and (3)(B) of subsection (d)" and inserting in lieu thereof "paragraphs (2) and (3)(B) of subsection (d), and paragraph (4)(A) of subsection (d) (to the extent related to the tax imposed by chapter 12 of the Internal Revenue Code of 1954)".

26 USC 2056.

26 USC 2035. 26 USC 2056 "°*®'

26 USC 2501 et

(b) AMENDMENTS RELATED TO SECTION 421.—
 * ^9(1) TREATMENT OF CERTAIN SURVIVING SPOUSES.—Paragraph (5) ^^ ^*^*- ^^^•

of section 2032A(b) (relating to special rules for surviving 26 USC 2032A. spouses) is amended by adding at the end thereof the following new subparagraph: "(C) COORDINATION WITH PARAGRAPH (4).—In any case in which to do so will enable the requirements of paragraph dXCXii) to be met with respect to the surviving spouse, this subsection and subsection (c) shall be applied by taking into account any application of paragraph (4)." (2) EXCHANGES OF QUALIFIED REAL PROPERTY.—

(A) Clause (ii) of section 2032A(i)(l)(B) (relating to exchanges where other property received) is amended by striking out "the other property" and inserting in lieu thereof "the qualified exchange property". (B) Paragraph (3) of section 2032A(i) is amended by striking out "subparagraph (A), (B), or (C)" and inserting in lieu thereof "subparagraph (A) or (B)". (3) TRANSFERS OF CERTAIN FARM, ETC., REAL PROPERTY.—

(A) Subsection (a) of section 1040 (relating to transfer of 26 USC 1040. certain farm, etc., real property) is amended by striking out "such exchange" and inserting in lieu thereof '^uch transfer". (B) Subsection (c) of section 1040 is amended—

�