Page:United States Statutes at Large Volume 98 Part 1.djvu/851

 PUBLIC LAW 98-369—JULY 18, 1984

98 STAT. 803

"(c) SPOUSE REUEVED OF LIABILITY IN CERTAIN OTHER CASES.—

Under regulations prescribed by the Secretary, if— "(1) an individual does not file a joint return for any taxable year, "(2) such individual does not include in gross income for such taxable year an item of community income properly includible therein which, in accordance with the rules contained in section 879(a), would be treated as the income of the other spouse, "(3) the individual establishes that he or she did not know of, and had no reason to know of, such item of community income, and "(4) taking into account all facts and circumstances, it is inequitable to include such item of community income in such individual's gross income, then, for purposes of this title, such item of community income shall be included in the gross income of the other spouse (and not in the gross income of the individual)."

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(2) CLERICAL AMENDMENTS.—

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(A) The section heading of section 66 is amended by 26 USC 66. striking out "WHERE SPOUSES LIVE APART". (B) The subsection heading of subsection (a) of section 66 is amended by striking out "GENERAL RULE" and inserting ^ '' in lieu thereof "TREATMENT OF COMMUNITY INCOME WHERE SPOUSES LIVE APART".

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(C) The table of sections for part I of subchapter B of chapter 1 is amended by striking out "where spouses live apart" in the item relating to section 66. (c) EFFECTIVE DATES.—

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26 USC 6013

(1) IN GENERAL.—Except as provided in paragraph (2), the note. amendments made by subsections (a) and (b) shall apply to all taxable years to which the Internal Revenue Code of 1954 26 USC i et seq. applies. Corresponding provisions shall be deemed to be included in the Internal Revenue Code of 1939 and shall apply to all 53 Stat. i. taxable years to which such Code applies. (2) AUTHORITY TO DISREGARD COMMUNITY PROPERTY LAWS.—

Subsection (b) of section 66 of the Internal Revenue Code of Ante, p. 802. 1954, as added by subsection (b), shall apply to taxable years beginning after December 31, 1984. SEC. 425. TREATMENT OF CERTAIN PROPERTY SETTLEMENTS FOR PURPOSES OF ESTATE AND GIFT TAXES. (a) DEDUCTION ALLOWED AGAINST ESTATE TAX FOR TRANSFERS SATISFYING SECTION 2516.—

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(1) IN GENERAL.—Subsection (b) of section 2043 (relating to 26 USC 2043. transfers for insufficient consideration) is amended to read as follows: "(b) MARITAL RIGHTS NOT TREATED AS CONSIDERATION.—

"(1) IN GENERAL.—For purposes of this chapter, a relinquishment or promised relinquishment of dower or curtesy, or of a statutory estate created in lieu of dower or curtesy, or of other marital rights in the decedent's property or estate, shall not be considered to any extent a consideration 'in money or money's worth'. "(2) EXCEPTION.—For purposes of section 2053 (relating to expenses, indebtedness, and taxes), a transfer of property which satisfies the requirements of paragraph (1) of section 2516 (relating to certain property settlements) shall be considered to be



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