95 STAT. 310 Ante, p. 309.
26 USC 1016.
PUBLIC LAW 97-34—AUG. 13, 1981 (2) Subparagraph (C) of section 2032A(e)(7) (as redesignated by paragraph (1)) is amended by inserting after "determined" the following: "and that there is no comparable land from which the average net share rental may be determined". (g) BASIS INCREASE WHERE RECAPTURE.—Subsection (c) of section 1016 (relating to adjustments to basis) is amended to read as follows: "(c) INCREASE IN BASIS OP PROPERTY ON WHICH ADDITIONAL ESTATE TAX IS IMPOSED.— "(1) TAX IMPOSED WITH RESPECT TO ENTIRE INTEREST.—If an
additional estate tax is imposed under section 2032A(c)(l) with respect to any interest in property and the qualified heir makes an election under this subsection with respect to the imposition of such tax, the adjusted basis of such interest shall be increased by an amount equal to the excess of— "(A) the fair market value of such interest on the date of the decedent's death (or the alternate valuation date under section 2032, if the executor of the decedent's estate elected the application of such section), over "(B) the value of such interest determined under section 2032A(a). "(2) PARTIAL DISPOSITIONS.-
"(A) IN GENERAL.—In the case of any partial disposition for which an election under this subsection is made, the increase in basis under paragraph (1) shall be an amount— "(i) which bears the same ratio to the increase which would be determined under paragraph (1) (without regard to this paragraph) with respect to the entire interest, as "(ii) the amount of the tax imposed under section 2032A(c)(l) with respect to such disposition bears to the adjusted tax difference attributable to the entire interest (as determined under section 2032A(c)(2)(B)). "(B) PARTIAL DISPOSITION.—For purposes of subparagraph (A), the term 'partial disposition' means any disposition or cessation to which subsection (c)(2)(D), (h)(l)(B), or (i)(l)(B) of section 2032A applies. "(3) TIME ADJUSTMENT MADE.—Any increase in basis under this subsection shall be deemed to have occurred immediately before the disposition or cessation resulting in the imposition of the tax under section 2032A(c)(l). "(4) SPECIAL RULE IN THE CASE OP SUBSTITUTED PROPERTY.—If
Ante, p. 308.
the tax under section 2032A(c)(l) is imposed with respect to qualified replacement property (EIS defined in section 2032A(h)(3)(B)) or qualified exchange property (as defined in section 2032A(i)(3)), the increase in basis under paragraph (1) shall be made by reference to the property involuntarily converted or exchanged (as the case may be). "(5) ELECTION.—
"(A) IN GENERAL.—An election under this subsection shall be made at such time and in such manner as the Secretary shall by regulations prescribe. Such an election, once made, shall be irrevocable. "(B) INTEREST ON RECAPTURED AMOUNT.—If an election is
made under this subsection with respect to any additional estate tax imposed under section 2032A(c)(l), for purposes of section 6601 (relating to interest on underpayments), the last date prescribed for payment of such tax shall be deemed to be the last date prescribed for payment of the tax imposed by
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