90 STAT. 1896 '
PUBLIC LAW 94-455—OCT. 4, 1976 tributions) is amended to read as follows; "For purposes of this subsection, contributions or payments on behalf of an individual while he was an employee within the meaning of section 401(c)(1) made under a trust or plan described in paragraph (1) or (2) of subsection (a) shall, to the extent allowable as a deduction under section 404, be considered to be made by a person other than such individual and, to the extent not so allowable, shall be considered to be made by such individual." (5) GIFT TAX TREATMENT or CERTAIN COMMUNITY PROPERTY.—
26 USC 2517.
Section 2517 (relating to certain annuities under qualified plans) is amended by redesignating subsection (c) (as amended by paragraph (4)(A) (iii)) as subsection (d) and by inserting after subsection (b) the following new subsection: "(c) EXEMPTION OF CERTAIN ANNUITY INTERESTS CREATED BY COMMUNITY PROPERTY LAWS.—Notwithstanding any other provision of
law, in the case of an employee on whose behalf contributions or payments are made— "(1) by his employer or former employer under a trust or plan described in paragraph (1) or (2) of subsection (a), or toward the purchase of a contract described in paragraph (3) of subsection (a), which under subsection (b) are not considered as contributed by the employee, or "(2) by the employee to a retirement plan described in paragraph (5) of subsection (a), a transfer of benefits attributable to such contributions or payments shall, for purposes of this chapter, not be considered as a transfer by the spouse of the employee to the extent that the value of any interest of such spouse in such contributions or payments or in such trust or plan or such contract— " (A) is attributable to such contribution or payments, and "(B) arises solely by reason of such spouse's interest in community income under the community property laws of the State." (d) INCOME TAX TREATMENT OF CERTAIN EXPENSES OF ESTATE.—Sec-
26 USC 642.
26 USC 2036 "<»**• 26 USC 2518 "o**-
tion 642(g) (relating to disallowance of double deductions) is amended by inserting after "shall not be allowed as a deduction" the following: "(or as an offset against the sales price of property in determining gain or loss)". (e) EFFECTIVE DATES.— (1) FOR SUBSECTION (a).—The amendment made by subsection
(a) shall apply to transfers made after June 22, 1976. (2) FOR SUBSECTION (b).—The amendments made by subsection (b) shall apply with respect to transfers creating an interest in the person disclaiming made after December 31, 1976. (3) FOR SUBSECTION (c). —
26 USC 2039 no*«' 26 USC 2517 "****• 26 USC 642
°®**-
(A) The amendments made by paragraph s (1), (2), and (3) of subsection (c) shall apply to the estates of decedents dying after December 31, 1976. (B) The amendments made by paragraph s (4) and (5) of subsection (c) shall apply to transfers made after December 31, 1976. (4) FOR SUBSECTION (d). — The amendment made by subsection
(d) shall apply to taxable years ending after the date of the enactment of this Act.
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