Page:United States Statutes at Large Volume 98 Part 1.djvu/852

 98 STAT. 804

PUBLIC LAW 98-369—JULY 18, 1984

26 USC 2053.

™. made for an adequate and full consideration in money or money's worth." (2) CROSS REFERENCE.—Subsection (e) of section 2053 (relating to deduction for expenses, indebtedness, and taxes) is amended to read as follows:

Ante, p. 803.

"(e) MARITAL RIGHTS.— "For provisions treating certain relinquishments of marital rights as consideration in money or money's worth, see section 2043(b)(2)." (b) SECTION 2516 EXTENDED TO AGREEMENTS ENTERED INTO WITHIN 1 YEAR AFTER DIVORCE.—Section 2516 (relating to certain property

settlements) is amended by striking out so much of such section as precedes paragraph (1) thereof and inserting in lieu thereof the following: "Where a husband and wife enter into a written agreement relative to their marital and property rights and divorce occurs within the 3-year period beginning on the date 1 year before such agreement is entered into (whether or not such agreement is approved by the divorce decree), any transfers of property or interests in property made pursuant to such agreement—". 26 USC 2043 note. 26 USC 2516 note.

26 USC 151.

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(c) EFFECTIVE DATES.— (1) SUBSECTION (a).—The amendments made by subsection (a)

shall apply to estates of decedents dying after the date of the enactment of this Act. (2) SUBSECTION (b).—The amendment made by subsection (b) shall apply to transfers after the date of the enactment of this Act. SEC. 426. INCOME FROM SHELTERED WORKSHOPS NOT TAKEN INTO ACCOUNT IN DETERMINING DEPENDENCY EXEMPTION. (a) IN GENERAL.—Subsection (e) of section 151 (relating to additional personal exemption for dependents) is amended by adding at the end thereof the following new paragraph: i«H

"(5) CERTAIN INCOME O F HANDICAPPED DEPENDENTS NOT TAKEN INTO ACCOUNT.—

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"(A) IN GENERAL.—For purposes of paragraph (I)(A), the gross income of an individual who is permanently and totally disabled shall not include income attributable to services performed by the individual at a sheltered workshop if— "(i) the availability of medical care at such workshop is the principal reason for his presence there, and "(ii) the income arises solely from activities at such workshop which are incident to such medical care. "(B) SHELTERED WORKSHOP DEFINED.—For purposes of subparagraph (A), the term 'sheltered workshop' means a school— "(i) which provides special instruction or training designed to alleviate the disability of the individual, and "(ii) which is operated by— "(I) an organization described in section 501(c)(3) and exempt from tax under section 501(a), or "(II) a State, a possession of the United States, any political subdivision of any of the foregoing, the United States, or the District of Columbia. "(C) PERMANENT AND TOTAL DISABILITY DEFINED.—An individual shall be treated as permanently and totally disabled

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