102 STAT. 3562
PUBLIC LAW 100-647—NOV. 10, 1988 "(1) LIMITATION ON EXEMPTION AMOUNT.—In the case of a child to whom section l(i) applies, the exemption amount for purposes of section 55 shall not exceed the sum of— "(A) such child's earned income (as defined in section 911(d)(2)) for the taxable year, plus "(B) $1,000. "(2) LIMITATION BASED ON PARENTAL MINIMUM TAX.—
"(A) IN GENERAL.—In the case of a child to whom section l(i) applies, the amount of the tax imposed by section 55 shall not exceed such child's share of the allocable parental minimum tax. "(B) ALLOCABLE PARENTAL MINIMUM TAX.—For purposes of this paragraph, the term 'allocable parental minimum tax' means the excess of^ "(i) the tax which would be imposed by section 55 on the parent if— "(I) the amount of the parent's tentative minimum tax were increased by the aggregate of the tentative minimum taxes of all children of the parent to whom section l(i) applies, and "(II) the amount of the parent's regular tax were increased by the aggregate of the regular taxes of all children of the parent to whom section l(i) applies, over "(ii) the tax imposed by section 55 on the parent without regard to this subparagraph. "(C) CHILD SHARE.—A child's share of any allocable parental minimum tax shall be determined under rules similar to the rules of section l(i)(3)(B). "(D)
26 USC 59 note.
OTHERS RULES MADE APPLICABLE.—For purposes of
this paragraph, rules similar to the rules of paragraphs (5) and (6) of section l(i) shall apply." (B) The amendment made by subparagraph (A) shall apply to taxable years beginning after December 31, 1988. (6) Subparagraph (A) of section l(i)(5) of the 1986 Code is amended by striking out "custodial parent" and inserting in lieu thereof "custodial parent (within the meaning of section 152(e))". (7) Paragraph (3) of section l(i) of the 1986 Code is amended by adding at the end thereof the following new subparagraph: "(C) SPECIAL RULE WHERE PARENT HAS DIFFERENT TAXABLE
YEAR.—Except as provided in regulations, if the parent does not have the same taxable year as the child, the allocable parental tax shall be determined on the basis of the taxable year of the parent ending in the child's taxable year." (£) AMENDMENT RELATED TO SECTION 1421 OF THE REFORM ACT.—
26 USC 2032A note.
Subsection (a) of section 1421 of the Reform Act is amended by striking out "within the time prescribed for filing such return (including extensions thereof)". (g) AMENDMENTS RELATED TO SECTION 1431 OF THE REFORM ACT.—
(1) Subsection (a) of section 2611 of the 1986 Code is amended by striking out "generation-skipping transfers" and inserting in lieu thereof "generation-skipping transfer". (2) Subsection (b) of section 2611 of the 1986 Code is amended by striking out paragraph (1) and by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively.
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