I

106TH CONGRESS

1ST SESSION H. R. 2107

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

JUNE 9, 1999

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. EXCLUSION FROM GROSS ESTATE OF VALUE

4 OF CERTAIN WORKS OF ARTISTIC PROPERTY

5 CREATED BY DECEDENT.

6 (a) IN GENERAL.—Section 2031 of the Internal Rev7 enue Code of 1986 (relating to definition of gross estate)

8 is amended by striking subsection (d) and inserting after

9 subsection (c) the following:
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1 ‘‘(d) WORKS OF ARTISTIC PROPERTY CREATED BY

2 THE DECEDENT.—

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

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

5 excluded from the gross estate the value of each

6 qualified work of artistic property held by the dece7 dent at the time of his death if, by his personal ef8 forts, the decedent created such qualified work of ar9 tistic property.

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

11 apply unless the decedent held at the time of his

12 death not less than 50 of such qualified works of ar13 tistic property.

14 ‘‘(3) QUALIFIED WORK OF ARTISTIC PROP15 ERTY.—For purposes of paragraph (1), the term

16 ‘qualified work of artistic property’ means a—

17 ‘‘(A) painting,

18 ‘‘(B) drawing,

19 ‘‘(C) sculpture,

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

21 carved, or fabricated of 200 or fewer that are

22 consecutively numbered by the decedent and

23 bear the signature or other existing mark of the

24 decedent,
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1 ‘‘(E) monoprint or monotype that is a

2 unique print or a print pulled in an edition of

3 1: a single impression,

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

5 not more than 200 copies that are signed and

6 consecutively numbered by the decedent, or

7 ‘‘(G) a still photographic image produced

8 for exhibition purposes only, existing in a single

9 copy that is signed by the decedent, or in a lim10 ited edition of 200 copies or fewer that are

11 signed and consecutively numbered by the dece12 dent.

13 ‘‘(4) ELECTION.—The election under this sub14 section shall be made on or before the due date (in15 cluding extensions) for filing the return of tax im16 posed by section 2001 and shall be made on such re17 turn.

18 ‘‘(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.’’.

19 (b) INCOME IN RESPECT OF DECEDENTS.—Sub20 section (a) of section 691 of such Code (relating to inclu21 sion in gross income of recipients of income in respect of
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1 decedents) is amended by adding at the end the following

2 new paragraph:

3 ‘‘(6) CERTAIN WORKS OF ARTISTIC PROP4 ERTY.—For purposes of paragraphs (1), (2), and

5 (3), a work of artistic property whose value was ex6 cluded from the gross estate of a decedent under

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

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

9 (c) CARRYOVER BASIS.—

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

11 1014 of such Code (relating to general rule for basis

12 of property acquired from a decedent) is amended by

13 striking ‘‘or’’ at the end of paragraph (3), by strik14 ing the period at the end of paragraph (4) and in15 serting ‘‘, or’’, and by adding at the end the fol16 lowing new paragraph:

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

18 treated as a right to receive an item of income in re19 spect of the decedent under section 691(a)(6), the

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

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

22 of section 1014 of such Code (relating to property

23 representing income in respect of a decedent) is

24 amended by striking ‘‘This’’ and inserting ‘‘Except

25 as provided by subsection (a)(5), this.’’.
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1 (d) EFFECTIVE DATE.—The amendments made by

2 this section shall apply to decedents dying after the date

3 of the enactment of this Act.

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