[56 STAT. Congress, was finally determined and paid by or on behalf of such donor, or the estate of such prior decedent, as the case may be, and only in the amount finally determined as the value of such property in determining the value of the gift, or the gross estate of such prior decedent, and only to the extent that the value of such property is included in the decedent's gross estate, and only if in determining the value of the net estate of the prior decedent no deduction was 26U. . . Supp. , allowable under this subsection, section 861 (a) (2), or the corre- S861(a) (2). sponding provisions of any prior Act of Congress, in respect of the Ante, .
a. property or property given in exchange therefor." 63 stat. 124 . 53Stat.2 p (2) The first sentence of the second paragraph of section 812 812(c). ' (c) is amended to read as follows: Antc,pp . ,M947. "Where a deduction was allowed of any mortgage or other lien in determining the gift tax, or the estate tax of the prior decedent, which was paid in whole or in part prior to the decedent's death, then the deduction allowable under this subsection shall be reduced by the amount so paid." 26 U.S .c pp. , (3) The first two sentences of section 861 (a) (2) are amended i, la)(2). to read as follows: "(2) PROPERTr PREVIOUSLY TAXED.-An amount equal to the value of any property (A) forming a part of the gross estate situated in the United States of any person who died within five years prior to the death of the decedent, or (B) transferred to the decedent by gift within five years prior to his death, where such property can be identified as having been received by the decedent from the donor by gift, or from such prior decedent by gift, bequest, devise, or inheritance, or which can be identified as having been acquired in exchange for property so received. Property includible in the gross estate of the prior decedent Ant, p. 942. under section 811 (f) and property included in total gifts of the Post,p.952. donor under section 1000 (c) received by the decedent described in this paragraph shall, for the purposes of this paragraph, be considered a bequest of such prior decedent or gift of such donor. This deduction shall be allowed only where a gift tax imposed 26 U.S. C. 1000- under Chapter 4, or under Title III of the Revenue Act of 1932, o101; Spp. ,952jO. 47 Stat. 245, or an estate tax imposed under this chapter or any Po, p. prior Act of Congress, was finally determined and paid by or on behalf of such donor, or the estate of such prior decedent, as the case may be, and only in the amount finally determined as the value of such property in determining the value of the gift, or the gross estate of such prior decedent, and only to the extent that the value of such property is included in that part of the dece- dent's gross estate which at the time of his death is situated in the United States, and only if in determining the value of the net estate of the prior decedent no deduction was allowable under 26 U.S . C., Supp. i, this paragraph, section 812 (c), or the corresponding provisions 1812 (p). 9of any prior Act of Congress, in respect of the property or property given in exchange therefor." tat. . (b) AMENDMENTS TO REVENUE ACT OF 1926 RELATING TO PROPERTY 44 s. PREVIOUSLY TAXED. - (1) The second sentence of section 303 (a) (2) of the Revenue Act of 1926, as amended, is amended by striking out "this" follow- 47 tat. 9. ing "estate tax imposed under" and inserting in lieu thereof "the 44S. Revenue Act of 1932". (2) The second sentence of section 303 (b) (2) of the Revenue Act of 1926, as amended, is amended by striking out "this" follow- ing "estate tax imposed under" and inserting m lieu thereof "the Revenue Act of 1932". . PUBLIC LAWS-CH. 619--OCT. 21, 1942 948
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