I 

108TH CONGRESS 

1ST SESSION H. R. 147

To amend the Internal Revenue Code of 1986 to exclude from the gross 

estate the value of certain works of artistic property created by the decedent. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 7, 2003

Mr. NADLER introduced the following bill; which was referred to the 

Committee on Ways and Means 

A BILL

To amend the Internal Revenue Code of 1986 to exclude 

from the gross estate the value of certain works of artistic property created by the decedent.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Artists’ Estate Tax 

5 Fairness Act’’. 

6 SEC. 2. EXCLUSION FROM GROSS ESTATE OF VALUE OF 

7 CERTAIN WORKS OF ARTISTIC PROPERTY 

8 CREATED BY DECEDENT. 

9 (a) IN GENERAL.—Section 2031 of the Internal Rev10 enue Code of 1986 (relating to definition of gross estate) 
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1 is amended by striking subsection (d) and inserting after 

2 subsection (c) the following: 

3 ‘‘(d) WORKS OF ARTISTIC PROPERTY CREATED BY

4 THE DECEDENT.—

5 ‘‘(1) IN GENERAL.—If the executor makes the 

6 election described in paragraph (4), there shall be 

7 excluded from the gross estate the value of each 

8 qualified work of artistic property held by the dece9 dent at the time of his death if, by his personal ef10 forts, the decedent created such qualified work of ar11 tistic property. 

12 ‘‘(2) APPLICATION.—Paragraph (1) shall not 

13 apply unless the decedent held at the time of his 

14 death not less than 50 of such qualified works of ar15 tistic property. 

16 ‘‘(3) QUALIFIED WORK OF ARTISTIC PROP17 ERTY.—For purposes of paragraph (1), the term 

18 ‘qualified work of artistic property’ means a—

19 ‘‘(A) painting, 

20 ‘‘(B) drawing, 

21 ‘‘(C) sculpture, 

22 ‘‘(D) sculpture that is in multiple cast, 

23 carved, or fabricated of 200 or fewer that are 

24 consecutively numbered by the decedent and 
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1 bear the signature or other existing mark of the 

2 decedent, 

3 ‘‘(E) monoprint or monotype that is a 

4 unique print or a print pulled in an edition of 

5 1: a single impression, 

6 ‘‘(F) print that is in a limited edition of 

7 not more than 200 copies that are signed and 

8 consecutively numbered by the decedent, or 

9 ‘‘(G) a still photographic image produced 

10 for exhibition purposes only, existing in a single 

11 copy that is signed by the decedent, or in a lim12 ited edition of 200 copies or fewer that are 

13 signed and consecutively numbered by the dece14 dent. 

15 ‘‘(4) ELECTION.—The election under this sub16 section shall be made on or before the due date (in17 cluding extensions) for filing the return of tax im18 posed by section 2001 and shall be made on such re19 turn. 

20 ‘‘(e) CROSS REFERENCES.—

‘‘(1) For executor’s right to be furnished on request a statement regarding any valuation made by 

the Secretary within the gross estate, see section 

7517. 

‘‘(2) For income in respect of a decedent in the 

case of works of art of the decedent who created 

such property, see section 691.’’.

21 (b) INCOME IN RESPECT OF DECEDENTS.—Sub22 section (a) of section 691 of such Code (relating to inclu-
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1 sion in gross income of recipients of income in respect of 

2 decedents) is amended by adding at the end the following 

3 new paragraph: 

4 ‘‘(6) CERTAIN WORKS OF ARTISTIC PROP5 ERTY.—For purposes of paragraphs (1), (2), and 

6 (3), a work of artistic property whose value was ex7 cluded from the gross estate of a decedent under 

8 section 2031(d) shall be treated as a right to receive 

9 an item of income in respect of a decedent.’’. 

10 (c) CARRYOVER BASIS.—

11 (1) IN GENERAL.—Subsection (a) of section 

12 1014 of such Code (relating to general rule for basis 

13 of property acquired from a decedent) is amended by 

14 striking ‘‘or’’ at the end of paragraph (3), by strik15 ing the period at the end of paragraph (4) and in16 serting ‘‘, or’’, and by adding at the end the fol17 lowing new paragraph: 

18 ‘‘(5) in the case of a work of artistic property 

19 treated as a right to receive an item of income in re20 spect of the decedent under section 691(a)(6), the 

21 basis in the hands of the decedent.’’. 

22 (2) CONFORMING AMENDMENT.—Subsection (c) 

23 of section 1014 of such Code (relating to property 

24 representing income in respect of a decedent) is 
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1 amended by striking ‘‘This’’ and inserting ‘‘Except 

2 as provided by subsection (a)(5), this.’’. 

3 (d) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to decedents dying after the date 

5 of the enactment of this Act.

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