Page:United States Statutes at Large Volume 98 Part 1.djvu/842

 98 STAT. 794

PUBLIC LAW 98-369—JULY 18, 1984 "(2) is related to the cessation of the marriage. "(d) SPECIAL RULE WHERE SPOUSE IS NONRESIDENT AUEN.—Para-

graph (1) of subsection (a) shall not apply if the spouse of the individual making the transfer is a nonresident alien." (b) TECHNICAL AMENDMENTS.—

26 USC 72.

26 USC 101. 26 USC 453B.

(1) REPEAL OF SECTION 72 (k).—Subsection (k) of section 72

(relating to payments in discharge of alimony) is hereby repealed. (2) REPEAL OF SECTION lOi (e).—Subsection (e) of section 101 (relating to alimony, etc., payments) is hereby repealed. (3) COORDINATION WITH SECTION 453B.—Section 453B (relating to gain or loss on disposition of installment obligations) is amended by adding at the end thereof the following new subsection: "(g) TRANSFERS BETWEEN SPOUSES OR INCIDENT TO DIVORCE.—In

Ante, p. 793.

26 USC 1001.

26 USC 1015.

Ante, p. 793.

Ante, p. 708.

26 USC 453.

the case of any transfer described in subsection (a) of section 1041— "(1) subsection (a) of this section shall not apply, and "(2) the same tax treatment with respect to the transferred installment obligation shall apply to the transferee as would have applied to the transferor.' (4) TERM INTERESTS.—Paragraph (1) of section 1001(e) (relating to certain term interest) is amended by striking out "section 1014 or 1015" and inserting in lieu thereof "section 1014, 1015, or 1041". (5) COORDINATION WITH SECTION IOI5.—Section 1015 (relating

to basis of property acquired by gifts and transfers in trust) is amended by adding at the end thereof the following new subsection: "(e) GIFTS BETWEEN SPOUSES.—In the case of any property acquired by gift in a transfer described in section 1041(a), the basis of such property in the hands of the transferee shall be determined under section 1041(b)(2) and not this section." (6) COORDINATION WITH SECTION 1239.— (A) Subsection (b) of section 1239, as amended by this Act, is amended by striking out paragraph (1) and by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively. (B) Subparagraph (C) of section 453(h)(l) (relating to special rule where obligor and shareholder are related persons) is amended by striking out "the obligor of any installment obligation and the shareholder are related persons" and inserting in lieu thereof "the obligor of any installment obligation and the shareholder are married to each other or are related persons". (C) The subsection heading for section 453(g) is amended by striking out "SPOUSE OR".

26 USC 47.

(7) COORDINATION WITH SECTION 47.—Section 47 (relating to certain dispositions, etc., of section 38 property) is amended by adding at the end thereof the following new subsection: "(e) TRANSFERS BETWEEN SPOUSES OR INCIDENT TO DIVORCE.—In

Ante, p. 793.

the case of any transfer described in subsection (a) of section 1041— "(1) subsection (a) of this section shall not apply, and "(2) the same tax treatment under this section with respect to the transferred property shall apply to the transferee as would have applied to the transferor." (c) CLERICAL AMENDMENT.—The table of sections for such part III is amended by adding at the end thereof the following:

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