PUBLIC LAW 97-34—AUG. 13, 1981
95 STAT. 301
(d) EFFECTIVE DATE.—The amendments made by this section shall 26 USC 2001 apply to estates of decedents dying after, and gifts made after, ^°December 31, 1981. SEC. 403. UNLIMITED MARITAL DEDUCTION. (a) ESTATE TAX DEDUCTION.—
(1) IN GENERAL.—Section 2056 (relating to bequests, etc., to 26 USC 2056. surviving spouses) is amended— (A) by striking out subsection (c) and redesignating subsection (d) as subsection (c); and (B) by striking out "subsections (b) and (c)" in subsection (a) and inserting in lieu thereof "subsection (b)". (2) CONFORMING AMENDMENTS.—
(A) Paragraph (2) of section 201203) (relating to credit for 26 USC 2012. gift tax) is amended to read as follows: "(2) if a deduction with respect to such gift is allowed under section 2056(a) (relating to marital deduction), then by the amount of such value, reduced as provided in paragraph (1); and". (B) Paragraph (5) of section 2602(c) (relating to coordina- 26 USC 2602. tion with estate tax) is amended by striking out subparagraph (A) and redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively. (C) Subparagraph (A) of section 691(c)(3) (relating to spe- 26 USC 691. cial rules for generation-skipping transfers) is amended by striking out "section 2602(c)(5)(C)" and inserting in lieu thereof "section 2602(c)(5)(B)". (b) GIFT TAX DEDUCTION.—
(1) IN GENERAL.—Subsection (a) of section 2523 (relating to gift 26 USC 2523. to spouse) is amended to read as follows: "(a) ALLOWANCE OF DEDUCTION.—Where a donor who is a citizen or resident transfers during the calendar year by gift an interest in property to a donee who at the time of the gift is the donor's spouse, there shall be allowed as a deduction in computing tsixable gifts for the calendar year an amount with respect to such interest equal to its value." (2) TECHNICAL AMENDMENT.—Section 2523 is amended by striking out subsection (f). (3) CONFORMING AMENDMENTS.—
(A) So much of section 6019 (relating to gift tax returns) as 26 USC 6019. follows the heading and precedes subsection (b) is amended to read as follows: "Any individual who in any calendar year makes any transfer by gift other than— "(1) a transfer which under subsection (b) or (e) of section 2503 is not to be included in the total amount of gifts for such year, or "(2) a transfer of an interest with respect to which a deduction is allowed under section 2523, shall make a return for such year with respect to the gift tax imposed by subtitle B." (B) Paragraph (2) of section 2035(b) is amended by insert- 26 USC 2035. ing "(other than by reason of section 6019(a)(2))" after "section 6019". (c) ESTATE TAX ON PROPERTY HELD JOINTLY BY HUSBAND AND WIFE.
(1) IN GENERAL.—Paragraph (2) of section 2040(b) (defining 26 USC 2040. qualified joint interest) is amended to read as follows:
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