78TH CONG. , 2D SESS.-CH. 63 -FEB. 25 , 1944 TITLE V-MISCELLANEOUS ESTATE TAX AND GIFT TAX AMENDMENTS, AND OTHER MIS- CELLANEOUS AMENDMENTS AND PROVI- SIONS SEC. 501. VALUATION OF UNLISTED STOCK AND SECURITIES FOR ESTATE TAX PURPOSES. Section 811 (relating to gross estate) is amended (a) by striking out "(k)" at the beginning of subsection (k) and inserting in lieu thereof "(1)", and (b) by inserting after subsection (j) the following: "(k) VALUATION OF UNLISTED STOCK AND SECURITIES.-In the case of stock and securities of a corporation the value of which by reason of their not being listed on an exchange and by reason of the absence of sales thereof, cannot be determined with reference to bid and asked prices or with reference to sales prices, the value thereof shall be determined taking into consideration, in addition to all other factors, the value of stock or securities of corporations engaged in the same or a similar line of business which are listed on an exchange." SEC. 502 CERTAIN DISCRETIONARY TRUSTS IN CONNECTION WITH GIFT TAX. (a) AMENDMENT OF THE INTERNAL RIVENSUE CoD. - - Section 1000 of the Internal Revenue Code (imposing the gift tax) is amended by inserting at the end thereof the following: "(e) CERTAIN DISCRETIONARY TRUSTS.- In the case of property in a trust created prior to January 1, 1939, if on and after January 1, 1939, no power to revest title to such property in the grantor could be exercised either by the grantor alone, or by the grantor in conjunction with any other person not having a substantial adverse interest in the disposition of such property or the income therefrom, then a relin- quishment by the grantor on or after January 1, 1940, and prior to January 1, 1945, of power or control with respect to the distribution of such property or the income therefrom by an exercise or other termination of such power or control shall not be deemed a transfer of property for the purposes of this chapter. If such property was transferred in trust, the grantor not retaining such power to revest title thereto in himself, or if such power to revest title to such property in the grantor was relinquished, while a law was in effect imposing a tax upon the transfer of property by gift, this subsection shall ap- ply only if (1) gift tax was paid with respect to such transfer or re- linquishment, and not credited or refunded, or a gift tax return was made within the time prescribed on account of such transfer or relin- quishment but no gift tax was paid with respect to such transfer or re- linquishment because of the deductions and exclusions claimed on such return, and (2) the grantor consents, in accordance with regulations prescribed by the Commissioner with the approval of the Secretary, for all purposes of this chapter to treat such transfer or relinquishment in the calendar year in which effected, and for all periods thereafter, as having been a transfer of property subject to tax under this chapter. This subsection shall not apply to any payment or other disposition of income occurring prior to the termination of power or control with respect to the future disposition of income from the trust property." (b) AEmNDMENT OF REVENUE ACT OF 1932.- Section 501 of the Revenue Act of 1932 (imposing a gift tax) is amended by inserting at the end thereof the following: 63 Stat. 120. 26U. .C. 811; Supp. III, 811. S3 Btat. 144. 26U..O.. 100I; upp. III, 10o0. 47 Stat. 246. 58 STAT.]
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