Page:United States Statutes at Large Volume 100 Part 3.djvu/906

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PUBLIC LAW 99-000—MMMM. DD, 1986

100 STAT. 2714

PUBLIC LAW 99-514—OCT. 22, 1986 The preceding sentence shall apply only to the extent the payments of estimated tax made by the trust for the taxable year exceed the tax imposed by this chapter shown on its return for the taxable year. "(2) TIME FOR MAKING ELECTION.—An election under paragraph (1) may be made— "(A) only on the trust's return of the tax imposed by this chapter for the taxable year, and "(B) only if such return is filed on or before the 65th day after the close of the taxable year." (c) CONFORMING AMENDMENTS.—

(1) Section 6152 (relating to installment payments) is repealed. (2) Section 6215(b) (relating to cross references) is amended by striking out paragraph (7) and redesignating paragraph (8) as paragraph (7). (3) Paragraph (2) of section 6601 (relating to last date prescribed for payment) is amended— (A) by striking out "6152(a), 6156(a), or 6158(a)" and inserting in lieu thereof "6156(a) or 6158(a)", and (B) by striking out "6152(b), 6156(b), or 6158(a)" in subparagraph (A) and inserting in lieu thereof "615603) or 6158(a)". (4) The table of sections for subchapter A of chapter 62 is amended by striking out the item relating to section 6152. (d) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 1986.

Subtitle B—Unearned Income of Certain Minor Children SEC. 1411. UNEARNED INCOME OF CERTAIN MINOR CHILDREN.

(a) GENERAL RULE.—Section 1, as amended by section 101, is amended by inserting after subsection (h) the following new subsection: "(i) CERTAIN UNEARNED INCOME OF MINOR CHILDREN TAXED AS IF PARENT'S INCOME.—

"(1) IN GENERAL.—In the case of any child to whom this subsection applies, the tax imposed by this section shall be equal to the greater of— "(A) the tax imposed by this section without regard to this subsection, or "(B) the sum of— "(i) the tax which would be imposed by this section if the taxable income of such child for the taxable year were reduced by the net unearned income of such child, plus "(ii) such child's share of the allocable parental tax. "(2) CHILD TO WHOM SUBSECTION APPLIES.—This subsection shall apply to any child for any taxable year if— "(A) such child has not attained age 14 before the close of the taxable year, and "(B) either parent of such child is alive at the close of the taxable year. _. . - _