Source: http://www.law.cornell.edu/uscode/text/26/2654?qt-us_code_tabs=2
Timestamp: 2015-01-31 13:42:36
Document Index: 686341286

Matched Legal Cases: ['§ 2654', '§ 2654', '§ 2654', '§ 1431', '§ 1014', '§ 7811', '§ 6013', '§ 1014', '§ 1014']

26 U.S. Code § 2654 - Special rules | LII / Legal Information Institute
U.S. Code › Title 26 › Subtitle B › Chapter 13 › Subchapter F › § 2654 26 U.S. Code § 2654 - Special rules
Basis adjustment (1)
In general Except as provided in paragraph (2), if property is transferred in a generation-skipping transfer, the basis of such property shall be increased (but not above the fair market value of such property) by an amount equal to that portion of the tax imposed by section 2601 (computed without regard to section 2604) with respect to the transfer which is attributable to the excess of the fair market value of such property over its adjusted basis immediately before the transfer. The preceding shall be applied after any basis adjustment under section 1015 with respect to the transfer.
Certain transfers at death If property is transferred in a taxable termination which occurs at the same time as and as a result of the death of an individual, the basis of such property shall be adjusted in a manner similar to the manner provided under section 1014
(a); except that, if the inclusion ratio with respect to such property is less than 1, any increase or decrease in basis shall be limited by multiplying such increase or decrease (as the case may be) by the inclusion ratio.
Certain trusts treated as separate trusts For purposes of this chapter—
Disclaimers For provisions relating to the effect of a qualified disclaimer for purposes of this chapter, see section 2518.
Limitation on personal liability of trustee A trustee shall not be personally liable for any increase in the tax imposed by section 2601 which is attributable to the fact that—
section 2642
(c) (relating to exemption of certain nontaxable gifts) does not apply to a transfer to the trust which was made during the life of the transferor and for which a gift tax return was not filed, or
(Added Pub. L. 99–514, title XIV, § 1431(a),Oct. 22, 1986, 100 Stat. 2727; amended Pub. L. 100–647, title I, § 1014(g)(12), (13),Nov. 10, 1988, 102 Stat. 3565, 3566; Pub. L. 101–239, title VII, § 7811(j)(2),Dec. 19, 1989, 103 Stat. 2411; Pub. L. 105–206, title VI, § 6013(a)(4)(B),July 22, 1998, 112 Stat. 819.)
1998—Subsec. (b). Pub. L. 105–206inserted at end “For purposes of this subsection, a trust shall be treated as part of an estate during any period that the trust is so treated under section 645.”
1989—Subsec. (a)(1). Pub. L. 101–239inserted at end “The preceding shall be applied after any basis adjustment under section 1015 with respect to the transfer.”
1988—Subsec. (a)(2). Pub. L. 100–647, § 1014(g)(12), inserted “or decrease” after “any increase” and “or decrease (as the case may be)” after “such increase”.
Subsec. (b). Pub. L. 100–647, § 1014(g)(13), substituted “Certain trusts” for “Separate shares” in heading and amended text generally. Prior to amendment, text read as follows: “Substantially separate and independent shares of different beneficiaries in a trust shall be treated as separate trusts.”
Amendment by Pub. L. 105–206effective, except as otherwise provided, as if included in the provisions of the Taxpayer Relief Act of 1997, Pub. L. 105–34, to which such amendment relates (see section 1305 ofPub. L. 105–34), see section 6024 ofPub. L. 105–206, set out as a note under section 1 of this title.