Page:United States Statutes at Large Volume 98 Part 1.djvu/646

 98 STAT. 598

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PUBLIC LAW 98-369—JULY 18, 1984 "(iii) the amount taken into account under sections 661(a)(2) and 662(a)(2) shall be the fair market value of such property. V "(B) ELECTION.—Any election under this paragraph shall be made by the estate or trust on its return for the taxable year for which the distribution was made. Any such election, once made, may be revoked only with the consent of the Secretary. "(4)

EXCEPTION FOR DISTRIBUTIONS DESCRIBED IN SECTION

663(a).—This subsection shall not apply to any distribution described in section 663(a)." 26 USC 643 note.

(b) EFFECTIVE D A T E. —

(1) IN GENERAL.—The amendment made by subsection (a) shall apply to distributions after June 1, 1984, in taxable years ending after such date. (2) TIME FOR MAKING ELECTION.—In the case of any distribution before the date of the enactment of this Act— (A) the time for making an election under section Ante, p. 597. 643(d)(3) of the Internal Revenue Code of 1954 (as added by this section) shall not expire before January 1, 1985, and (B) the requirement that such election be made on the return of the estate or trust shall not apply. SEC. 82. TREATMENT OF MULTIPLE TRUSTS. 26 USC 643. (a) GENERAL RULE.—Section 643 (relating to definitions applicable to subparts A, B, C, and D) is amended by adding at the end thereof the following new subsection: "(e) TREATMENT OF MULTIPLE TRUSTS.—For purposes of this subchapter, under regulations prescribed by the Secretary, 2 or more trusts shall be treated as 1 trust if— "(1) such trusts have substantially the same grantor or gran^f > tors and substantially the same primary beneficiary or beneficiaries, and "(2) a principal purpose of such trusts is the avoidance of the tax imposed by this chapter. For purposes of the preceding sentence, a husbcuid and wife shall be treated as 1 person. 26 USC 643 note. (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to taxable years beginning after March 1, 1984.

Subtitle G—Accounting Changes 26 USC 461.

SEC. 91. CERTAIN AMOUNTS NOT TREATED AS INCURRED BEFORE ECONOMIC PERFORMANCE. (a) IN GENERAL.—Section 461 (relating to general rule for taxable year of deduction) is amended by adding at the end thereof the following new subsections: "(h) CERTAIN LIABIUTIES NOT INCURRED BEFORE ECONOMIC PERFORMANCE.—

"(1) IN GENERAL.—For purposes of this title, in determining whether an amount has been incurred with respect to any item during any taxable year, the all events test shall not be treated as met any earlier than when economic performance with respect to such item occurs. "(2) TIME WHEN ECONOMIC PERFORMANCE OCCURS.—Except as

provided in regulations prescribed by the Secretary, the time

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