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‘‘(B) DEFINITIONS.—For purposes of this
paragraph—
‘‘(i) ADDITIONAL CONTRIBUTION.—The
term ‘additional contribution’ means any
charitable contribution by the taxpayer of
any interest in property with respect to
which the taxpayer has previously made an
initial fractional contribution.
‘‘(ii) INITIAL FRACTIONAL CONTRIBU-
TION.—The term ‘initial fractional con-
tribution’ means, with respect to any tax-
payer, the first charitable contribution of an
undivided portion of the taxpayer’s entire
interest in any tangible personal property.
‘‘(2) RECAPTURE
OF
DEDUCTION
IN
CERTAIN
CASES.—
‘‘(A) IN
GENERAL.—The Secretary shall
provide for the recapture of an amount equal to
the amount of any deduction allowed under this
section (plus interest) with respect to any con-
tribution of an undivided interest of a taxpayer’s
entire interest in property in any case where
such property is not in the physical possession of
the donee during any applicable period for a pe-
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riod of time which bears substantially the same
ratio to 1 year as—
‘‘(i) the percentage of the undivided in-
terest of the donee in the property (deter-
mined on the day after such contribution
was made), bears to
‘‘(ii) 100 percent.
‘‘(B) APPLICABLE
PERIOD.—For purposes
of subparagraph (A), the term ‘applicable period’
means any 1-year period which begins on—
‘‘(i) in the year of the contribution, the
date of the contribution, and
‘‘(ii) in any subsequent calendar year,
the date which corresponds to the date de-
scribed in clause (i).
‘‘(C) ANTI-ABUSE
RULES.—The Secretary
shall prescribe such regulations as necessary to
prevent the avoidance of the purposes of this
paragraph through the transfer of any such un-
divided interest to a third party controlled by
the taxpayer.’’.
(b) ESTATE TAX.—Section 2055 (relating to transfers
for public, charitable, and religious uses) is amended by re-
designating subsection (g) as subsection (h) and by insert-
ing after subsection (f) the following new subsection:
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‘‘(g) VALUATION OF SUBSEQUENT GIFTS.—
‘‘(1) IN GENERAL.—In the case of any additional
contribution, the fair market value of such contribu-
tion shall be determined by using the lesser of—
‘‘(A) the fair market value of the property
at the time of the initial fractional contribution,
or
‘‘(B) the fair market value of the property
at the time of the additional contribution.
‘‘(2) 
DEFINITIONS.—For 
purposes 
of 
this
paragraph—
‘‘(A) 
ADDITIONAL
CONTRIBUTION.—The
term ‘additional contribution’ means a bequest,
legacy, devise, or transfer described in subsection
(a) of any interest in a property with respect to
which the decedent had previously made an ini-
tial fractional contribution.
‘‘(B) INITIAL FRACTIONAL CONTRIBUTION.—
The term ‘initial fractional contribution’ means,
with respect to any decedent, any charitable con-
tribution of an undivided portion of the dece-
dent’s entire interest in any tangible personal
property for which a deduction was allowed
under section 170.’’.
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(c) GIFT TAX.—Section 2522 (relating to charitable
and similar gifts) is amended by redesignating subsection
(e) as subsection (f) and by inserting after subsection (d)
the following new subsection:
‘‘(e) SPECIAL RULES FOR FRACTIONAL GIFTS.—
‘‘(1) VALUATION OF SUBSEQUENT GIFTS.—
‘‘(A) IN GENERAL.—In the case of any ad-
ditional contribution, the fair market value of
such contribution shall be determined by using
the lesser of—
‘‘(i) the fair market value of the prop-
erty at the time of the initial fractional
contribution, or
‘‘(ii) the fair market value of the prop-
erty at the time of the additional contribu-
tion.
‘‘(B) DEFINITIONS.—For purposes of this
paragraph—
‘‘(i) ADDITIONAL CONTRIBUTION.—The
term ‘additional contribution’ means any
gift for which a deduction is allowed under
subsection (a) or (b) of any interest in a
property with respect to which the donor
has previously made an initial fractional
contribution.