An Act to amend the Internal Revenue Code to extend the time during which certain provisions relating to income and estate taxes shall apply, and for other purposes
PL 83-287 (H.R.6426), enacted 08/15/1953

67 S T A T . ] 
PUBLIC LAW 2 8 7 - A U G . 15, 1953 
61fi. 
Public Law 287 
C H A P T E R 5 1 2 
AN ACT 
To amend the Internal Revenue Code to extend the time during which certain 
provisions relating to income and estate taxes shall apply, and for other 
purposes. 
August 15, 1953 
[H. R. 6426] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That (^a) SHORT 
TITLE.—This Act, divided into titles and sections according to the 
following table of contents, may be cited as the "Technical Changes 
Act of 1953": 
TABLE OF CONTENTS 
TITLE I—EXTENSION PROVISIONS 
Sec. 101. Election as to recognition of gain in certain corporate liquidations. 
Sec. 102. Extension of time to make election in respect of excessive depreciation 
allowed for periods before 1952. 
Sec. 103. Extension of time for making election with respect to war-loss 
recoveries. 
Sec-104. Extension of period of abatement of income taxes of members of Armed 
Forces upon death. 
Sec. 105. Extension of temporary provisions relating to life insurance companies. 
Sec. 106. Extension of period for exemption from additional estate tax of mem-
bers of Armed Forces upon death. 
TITLE II—MISCELTANEOITS 
Sec. 201. Venue of actions for violations of Act of October 19, 1949. 
Sec. 202. Deduction of certain unpaid expenses and interest. 
Sec. 203. Basis of certain property transferred in trust. 
Sec. 204. Earned income from sources without the United States. 
Sec. 205. Net operating loss carry-overs. 
Sec. 206. Amortization deduction for grain storage facilities. 
Sec. 207. Exclusion of certain transfers taking effect at death. 
Sec. 208. Failure to relinquish a power in certain disability cases. 
Sec. 209. Reversionary interests in case of life insurance. 
Sec. 210. Marital deduction in certain cases where decedent died before April 
3,1948. 
Sec. 211. Mitigation of effect of statute of limitations. 
(b) 
ACT AMENDATORY OF INTERNAL EEVENUE CODE.—Except as 
otherwise expressly provided, wherever in this Act an amendment or 
repeal is expressed in terms of an amendment to or repeal of a chapter, 
subchapter, title, supplement, section, subsection, subdivision, para-
graph, subparagraph, or clause, the reference shall be considered to 
be made to a provision of the Internal Kevenue Code. 
(c) MEANING OF TERMS USED.—Except as otherwise expressly pro-
vided, terms used in this Act shall have the same meaning as when 
used in the Internal Revenue Code: 
T e c h n i c a l 
C h a n g e s Act oif 
1953. 
Income and es-
tate taxes. 
TITLE I~EXTENSION PROVISIONS 
SEC. 101. ELECTION AS TO RECOGNITION OF GAIN IN CERTAIN 
CORPORATE LIQUIDATIONS. 
(a) AMENDMENT or SECTION 112 (b) (7).—Section 112 (b) (7) 
(relating to recognition of gain in certain corporate liquidations) is 
hereby amended by striking out "1951 or 1952" in subparagraph (A) 
(ii) and inserting in lieu thereof "1951,1952, or 1953". 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) shall 
apply with respect to taxable years ending after December 31, 1952. 
65 Stat. 493. 
26 u s e 112. 
616 
PUBLIC LAW 287-AUG. 15, 1953 
[67 STAT. 
SEC. 102. EXTENSION OF TIME TO MAKE ELECTION IN RESPECT OF 
EXCESSIVE 
DEPRECIATION 
ALLOWED 
FOR PERIODS 
.. . i 
BEFORE 1952. 
66 Stat. 629. 
(a) AMENDMENT OF SECTION 113 (d).—So Hiuch of section 113 (d) 
(relating to election in respect of depreciation, etc., allowed before 
1952) as follows the first sentence thereof is hereby amended to read 
as follows: "Such an election shall be made in such manner as the 
Secretary may by regulations prescribe and shall be irrevocable when 
made, except that an election made on or before December 31, 1952, 
may be revoked at any time before January 1, 1955. A revocation of 
an election shall be made in such manner as the Secretary may by 
regulations prescribe, and no election may be made by any person 
after he has so revoked an election. The election shall apply in respect 
of all property held by the person making the election at any time 
on or before December 31, 1952, and in respect of all periods since 
February 28, 1913, and before January 1, 1952, during which such 
person held such property or for which adjustments must be made 
under subsection (b) (2). An election or a revocation of an election 
by a transferor, donor, or grantor made after the date of the transfer, 
gift, or grant of property shall not affect the basis of such property in 
the hands of the transferee, donee, or grantee. No election may be 
made under this subsection after December 31,1954." 
(b) EFFECTIVE DATE.—^The amendment made by subsection (a) 
shall be effective as if included in the amendment made by section 2 
66 Stat. 629. 
gf Public Law 539, Eighty-second Congress, at the time of its 
enactment. 
SEC. 103. EXTENSION OF TIME FOR MAKING ELECTION WITH RE-
SPECT TO WAR-LOSS RECOVERIES. 
65 Stat. 514. 
Scctiou 127 (c) (5) (relating to election with respect to war-loss 
"^^ 
* 
recoveries) is hereby amended by striking out "December 31,1952" and 
inserting in lieu thereof "December 31,1953". 
SEC. 104. EXTENSION OF PERIOD OF ABATEMENT OF INCOME TAXES 
OF MEMBERS OF ARMED FORCES UPON DEATH. 
65 Stat. 507. 
Scction 154 (relating to income taxes of members of Armed Forces 
26 use 154. 
^^ death) is hereby amended by striking out "January 1, 1954" and 
inserting in lieu thereof "January 1,1955". 
SEC. 105. EXTENSION OF TEMPORARY PROVISIONS RELATING TO 
LIFE INSURANCE COMPANIES. 
66 Stat. 444. 
(a) TAX F
O
R 1953.—Scctious 201 (a) (1) (relating to imposition of 
203A,"f3f ^^^' tax on life insurance companies), 203A (relating to 1951 and 1952 
adjusted normal-tax net income of life insurance companies), and 433 
(a) (1) (H) (relating to excess profits net income of life insurance 
companies) are each hereby amended by striking out "1951 and 1952" 
wherever appearing therein and inserting in lieu thereof "1953". 
(b) EFFECTIVE DATE.—The amendments made by subsection (a) 
shall apply only to taxable years beginning in 1953. The application 
26 use 201. 
of the amendment to section 201 (f) (relating to disallowance of 
double deductions) made by section 336 (c) (2) of the Revenue Act of 
65 Stat. 508. 
1951 is hereby extended to taxable years beginning after December 31, 
1952. 
SEC. 106. EXTENSION OF PERIOD FOR EXEMPTION FROM ADDI-
TIONAL ESTATE TAX OF MEMBERS OF ARMED FORCES 
UPON DEATH. 
65 Stat. 567. 
Sectioii 939 (b) (relating to the tax treatment of estates of certain 
members of the Armed Forces) is hereby amended by striking out 
"JANUARY 1, 1954" and inserting in lieu thereof "JANUARY 1, 1955", 
and by striking out "January 1, 1964" and inserting in lieu thereof 
"January 1,1955". 
26 use 939. 
67 S T A T . ] 
PUBLIC LAW 2 8 7 - A U G . 15, 1953 
617 
TITLE II—MISCELLANEOUS 
SEC. 201. VENUE OF ACTIONS FOR VIOLATIONS OF ACT OF OCTOBER 
19, 1949. 
(a) AMENDMENT OF ACT.—Section 2 of the Act entitled "An Act 
to assist States in collecting sales and use taxes on cigarettes", approved 
October 19,1949 (15 U. S. C , sec. 376), is hereby amended by striking 
^3 stat. 884. 
out "forward to" and inserting in lieu thereof "file with". 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) shall 
apply only in respect of memoranda or copies of invoices covering 
shipments made during the calendar month in which this Act is 
enacted and subsequent calendar months. 
SEC. 202. DEDUCTION OF CERTAIN UNPAID EXPENSES AND IN-
TEREST. 
(a) AMENDMENT OF SECTION 24 (c).—Paragraph (1) of section 
24 (c) (relating to disallowance of certain deductions for expenses 
96 use*2V* 
incurred and interest accrued) is hereby amended to read as follows: 
"(1) If within the period consisting of the taxable year of 
the taxpayer and two and one-half months after the close thereof 
(A) such expenses or interest are not paid, and (B) the amount 
thereof is not includible in the gross income of the person to whom 
the payment is to be made; and". 
(b) 
EFFECTIVE DATE.— 
(1) Except as otherwise provided in paragraph (2), the amendment 
made b j subsection (a) shall apply only with respect to taxable years 
beginning after December 31, 1950, 
(2) At the election of a taxpayer (hereinafter in this paragraph 
referred to as the "payor") made within one year after the date of 
the enactment of this Act, the amendment made by subsection (a) 
shall also apply with respect to such taxable years of the payor begin-
ning after December 31, 1945, and before January 1, 1951, as are 
specified by the payor in making such election. 
Such election for 
any taxable year shall not be valid as to any amount unless, at or 
before the time when such election is filed— 
(A) the person (hereinafter in this paragraph referred to as 
the "payee") to whom such amount was payable included such 
amount in gross income for his taxable year for which such amount 
was includible in gross income, or 
(B) the payee files a written consent to the assessment and 
collection of any deficiency and interest resulting from the payee's 
failure to include such amount in gross income for such taxable 
year, or 
(C) the payor pays an amount equal to the deficiency and 
interest which would be payable by the payee pursuant to sub-
paragraph (B) if he filed such consent. 
(Any amount paid 
under this subparagraph shall be assessed, notwithstanding any 
law or rule of law to the contrary, as an addition to the tax of 
the payor for the year for which the election is filed.) 
The periods of limitation provided in sections 275 and 276 of the 
Internal Revenue Code on the making of an assessment and the 
26 ub'C275,276. 
beginning of distraint or a proceeding in court for collection shall, 
with respect to any deficiency and interest thereon resulting from any 
consent filed pursuant to subparagraph (B), include one year immedi-
ately following the date such consent is filed, and such assessment and 
collection may be made notwithstanding any provision of law or any 
rule of law which otherwise would prevent such assessment and collec-
tion. If an election by a payor should be filed for a taxable year of 
the payor for which allowance of credit or refund of an overpayment 
618 
PUBLIC LAW 287-AUG. 15, 1953 
[67 ST A T . 
26 use 3761. 
26 use 3801. 
53 Stat. 41. 
26 use 311. 
65 Stat. 498. 
26 use 116. 
65 Stat. 498. 
26 use 1621. 
is barred (at the time of such filing) by any law or rule of law, any 
consent filed by the payee in respect of any amount which represents 
expenses incurred or interest accrued by the payor for such year shall 
be void. If a consent requires the inclusion in the gross income of the 
payee for any taxable year of an amount which was erroneously 
included in the gross income of the payee for another taxable year and, 
on the date the consent is filed, correction of the effect of the error is 
prevented by the operation of any provision of the internal-revenue 
laws other than section 3761 of the Internal Revenue Code (relating 
to compromises), then the effect of the error shall be corrected in 
accordance with section 3801 of the Internal Revenue Code as if the 
consent were a determination under such section 3801 in which there 
is adopted a position maintained by the Secretary of the Treasury. 
The Secretary of the Treasury shall prescribe such regulations as may 
be necessary to carry out the provisions of this paragraph. 
SEC. 203. BASIS OF CERTAIN PROPERTY TRANSFERRED IN TRUST. 
(a) AMENDMENT OF SECTION 113 (a) (5).—The second sentence of 
section 113 (a) (5) (relating to the basis of property transmitted at 
death) is hereby amended by inserting immediately after the words 
"revoke the trust" the following: "or to make any change in the enjoy-
ment thereof through the exercise of a power to alter, amend, or 
terminate the trust". 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) shall 
apply (1) only in the case of property transferred by grantors dying 
after December 31, 1951, and (2) only with respect to taxable years 
ending after December 31, 1951. 
SEC. 204. EARNED INCOME FROM SOURCES WITHOUT THE UNITED 
STATES. 
(a) AMENDMENT OF SECTION 116 (a) (2).—Section 116 (a) (2) 
(relating to exclusion from gross income of earned income from 
sources without the United States) is hereby amended by adding at 
the end thereof the following new sentences: 
"If the 18-month period includes the entire taxable year, the amount 
excluded under this paragraph for such taxable year shall not exceed 
$20,000. If the 18-month period does not include the entire taxable 
year, the amount excluded under this paragraph for such taxable year 
shall not exceed an amount which bears the same ratio to $20,000 as 
the number of days in the part of the taxable year within the 18-month 
period bears to the total number of days in such year." 
(b) 
WITHHOLDING OF TAX ON WAGES OF CITIZENS OUTSIDE THE 
UNITED STATES.—So much of section 1621 (a) (8) (relating to the 
definition of wages) as precedes subparagraph (B) tnereof is hereby 
amended to read as follows: 
"(8) (A) for services for an employer (other than the United 
States or any agency thereof) (i) performed by a citizen of the 
United States if, at the time of the payment of such remunera-
tion, it is reasonable to believe that such remuneration will be 
excluded from gross income under section 116 (a), or (ii) per-
formed in a foreign country by such a citizen if, at the time of 
the payment of such remuneration, the employer is required 
by the law of any foreign country to withhold income tax upon 
such remuneration, or". 
(c) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply with respect to taxable years ending after December 31, 
1952, but only to amounts received after such date. In the case of 
any taxable year beginning in 1952 and ending in 1953 the exclusion 
of amounts received after December 31, 1952, shall not exceed an 
amount which is the same proportion of $20,000 as the number of days 
67 S T A T . ] 
PUBLIC L
A
W 287-AUG. 16, 1958 
619 
in such taxable year after December 31, 1952, is of 365 days. The 
amendments made by subsections (a) and (b) shall not affect the 
liability of any employer to deduct and withhold the tax imposed by 
section 1622 in the case of any remuneration paid before the first day 
^6 use 1622. 
of the first month beginning more than ten days after the date of the 
enactment of this Act. 
SEC. 205. NET OPERATING LOSS CARRY-OVERS. 
(a) 
AMENDMENT OF SECTION 122 (b) 
(2).— 
26 use 122. 
(1) Section 122 (b) (2) (relating to net operating loss carry-
over) is hereby amended by adding after subparagraph (D) the 
following new subparagraphs: 
"(E) Loss For Taxable Years of Corporations Beginning 
In 1947 And Ending In 1948.—If a corporation (other than 
a corporation which commenced business after December 31, 
1945) has a net operating loss for a taxable year beginning 
in 1947 and ending in 1948, subparagraph (C) shall apply as 
if the taxable year began after December 31,1947; except that 
the net operating loss carry-over for the third succeeding 
taxable year shall not exceed that amount which bears the 
same ratio to the net operating loss as the number of days in 
the taxable year after December 31, 1947, bears to the total 
number of days in the taxable year. 
"(F) Loss in Case of Corporations Whose First Taxable 
Year Began in 1949 and Ended in 1950.—If the first tax-
*' ' 
able year of a corporation began in 1949 and ended in 1950, 
and if the corporation had a net operating loss for such 
first taxable year, there shall be a net operating loss carry-
over for the fourth and fifth succeeding taxable years. 
The 
amount of such carry-over shall be determined in accordance 
r..! 
with the first sentence of subparagraph (B); except that— 
"(i) such carry-over for the fourth succeeding tax-
able year shall not exceed so much of such net operating 
loss as is allocable to 1950, and 
"(ii) such carry-over for the fifth succeeding taxable 
year shall not exce*. d the amount by which the carry-
over for the fourth succeeding taxable year (as limited 
by clause (i) of this sentence) exceeds the net income for 
the fourth succeeding taxable year computed as provided 
in clauses (i) and (ii) of the first sentence of subpara-
graph (B). 
For the purposes of the preceding sentence, the portion of 
the net operating loss which is allocable to 1950 shall be an 
amount which bears the same ratio to such loss as the number 
of days in the taxable year after December 31, 1949, bears to 
the total number of days in the taxable year." 
(2) Subparagraph (A) of section 122 (b) 
(2) is hereby 
amended by striking out "subparagraph (D)," and inserting in 
lieu thereof "subparagraphs (D) and (E),". 
(3) The amendment made by paragraph (2), and subpara-
graph (E) of section 122 (b) (2) of the Internal Revenue C o ^ 
as added by paragraph (1), shall apply with respect to taxable 
years ending after December 31, 1947. Subparagraph (F) of 
section 122 (b) (2) of the Internal Revenue Code as added by 
paragraph (1) shall apply with respect to taxable years ending 
after December 31,1949. 
(b) 
SUCCESSOR RAILROAD CORPORATIONS.— 
(1) Subsection (c) of the first section of the Act of July 15, 
1947 (61 Stat. 324), relating to allowance to successor railroad 
26usci22note. 
corporations of benefits of certain carry-overs of predecessor cor-
porations, is hereby amended to read as follows: 
620 
PUBLIC LAW 287-AUG. 15, 1953 
[67 STAT. 
"(c) For the purposes of this section, if the period, beginning on 
the first day of the taxable year of the predecessor corporation in 
which the acquisition occurred and ending on the last day of the 
' 
' 
taxable year of the successor corporation in which the acquisition 
occurred, is not more than twelve months, then— 
"(1) if such net operating loss or unused excess profits credit 
was for a taxable year beginning before January 1, 1948, the 
., 
,. 
number of succeeding taxable years to which such net operating 
loss or unused excess profits credit is a carry-over shall be three 
26 use 122,710. 
(instead of two, as respectively provided in section 122 (b) (2) 
(A) and section 710 (c) (3) (B) of such code) ; and 
" (2) if such net operating loss was for a taxable year beginning 
after December 31, 1947, and before January 1,1950, the number 
of succeeding taxable years to which such net operating loss is a 
carry-over shall be four (instead of three, as provided in section 
122 (b) (2) (C) of such code); 
and such regulations shall prescribe (as nearly as possible in the 
manner respectively prescribed in sections 122 (b) (2) and 710 (c) 
(3) (B) of such code with respect to a net operatmg loss or an unused 
excess profits credit, as the case may be, for such taxable year) the 
amount to be carried over to the last of such succeeding taxable years." 
(2) The amendment made by paragraph (1) shall be effective 
as if included in such Act of July 15, 1947, at the time of its 
enactment. 
SEC. 206. AMORTIZATION DEDUCTION FOR GRAIN STORAGE FA-
CILITIES. 
(a) ALLOWANCE OF DEDUCTION.—Supplement B of subchapter C 
26 use 124A. 
of chapter 1 is hereby amended by inserting after section 124A the 
following new section: 
'SEC. 124B. AMORTIZATION DEDUCTION FOR GRAIN STORAGE FA-
CILITIES. 
"(a) ALLOWANCE or DEDUCTION.— 
"(1) 
ORIGINAL OWNER.—^Any person who constructs, recon-
structs, or erects a grain storage facility (as defined in subsection 
(d)) shall, at his election, be entitled to a deduction with respect 
to the amortization of the adjusted basis (for determining gain) 
of such facility based on a period of sixty months. The sixty-
month period shall begin as to anv such facility, at the election 
of the taxpayer, with the month following the month in which 
the facility was completed, or with the succeeding taxable year. 
"(2) SUBSEQUENT OWNERS.—Any person who acquires a grain 
storage facility from a taxpayer who— 
"(A) elected under subsection (b) to take the amortization 
deduction provided by this subsection with respect to such 
facility, and 
"(B) did' not discontinue the amortization deduction 
pursuant to subsection (c). 
shall, at his election, be entitled to a deduction with respect to the 
adjusted basis (determined under subsection (e) (2)) of such 
facility based on the period, if any, remaining (at the time of 
acquisition) in the sixty-month period elected under subsection 
(b) by the person who constructed, reconstructed, or erected such 
facility. 
"(3) AMOUNT OF DEDUCTION.—The amortization deduction pro-
vided in paragraphs (1) and (2) shall be an amount, with respect 
to each month of the amortization period within the taxable year, 
equal to the adjusted basis of the facility at the end of such month, 
divided by the number of months (including the month for which 
the deduction is computed) remaining ir; tj 
^tloJ. 
Such 
67 S T A T . ] 
PUBLIC LAW 287-AUG. 15, 1953 
621 
adjusted basis at the end of the month shall be computed without 
regard to the amortization deduction for such month. The 
amortization deduction above provided with respect to any month 
shall be in lieu of the deduction with respect to such facility for 
such month provided by section 23 (1) (relating to exhaustion, 
26 use 23. 
wear and tear, and obsolescence). 
"(b) ELECTION OF AMORTIZATION.—The election of the taxpayer 
under subsection (a) (1) to take the amortization deduction and to 
begin the sixty-month period with the month following the month 
in which the facility was completed shall be made only by a statement 
to that effect in the return for the taxable year in which the facility 
was completed. The election of the taxpayer under subsection (a) 
(1) to take the amortization deduction and to begin such period with 
the taxable year succeeding such year shall be made only by a state-
ment to that effect in the return for such succeeding taxable year. The 
election of the taxpayer under subsection (a) (2) to take the amorti-
zation deduction shall be made only by a statement to that effect in 
the return for the taxable year in which the facility was acquired. 
Notwithstanding the preceding three sentences, the election of the 
taxpayer under subsection (a) (1) or (2) may be made, under such 
regulations as the Secretary may prescribe, before the time prescribed 
in the applicable sentence. 
"(c) TERMINATION OF AMORTIZATION DEDUCTION.—A taxpayer which 
has elected under subsection (b) to take the amortization deduction 
provided in subsection (a) may, at any time after making such 
election, discontinue the amortization deduction with respect to the 
remainder of the amortization period, such discontinuance to begin as 
of the beginning of any month specified by the taxpayer in a notice 
in writing filed with the Secretary before the beginning of such month. 
The deduction provided under section 23 (1) shall be allowed, begin- 
^^ ^^^ ^3. 
ning with the first month as to which the amortization deduction is 
not applicable, and the taxpayer shall not be entitled to any further 
amortization deduction with respect to such facility. 
"(d) DEFINITION OF GRAIN STORAGE FACILITT.—For the purposes 
of this section, the term 'grain storage facility' means— 
" (1) any corn crib, grain bin, or grain elevator, or any similar 
structure suitable primarily for the storage of grain, which crib, 
bin, elevator, or structure is intended by the taxpayer at the time 
of his election to be used for the storage of grain produced by 
him (or, if the election is made by a partnership, produced by 
the members thereof); and 
"(2) any public grain warehouse permanently equipped for 
receiving, elevating, conditioning, and loading out grain, 
the construction, reconstruction, or erection of which was completed 
after December 31, 1952, and on or before December 31,1956. If any 
structure described in clause (1) or (2) of the preceding sentence is 
altered or remodeled so as to increase its capacity for the storage of 
grain, or if any structure is converted, through alteration or remodel-
ing, into a structure so described, and if such alteration or remodeling 
was completed after December 31, 1952, and on or before December 
31, 1956, such alteration or remodeling shall be treated as the con-
struction of a grain storage facility. The term 'grain storage facility' 
shall include only property of a character which is subject to the 
allowance for depreciation provided in section 23 (1). The term 'grain 
^* "^^ ^^* 
storage facility' shall not include any facility any part of which is 
an emergency facility within the meaning of section 124A. 
26 use 124A. 
27000 O - 53 - 42 
622 
PUBLIC LAW 2&7-AUG. 15, 1953 
[67 STAT. 
"(e) DETERMINATION OF ADJUSTED BASIS.— 
"(1) ORIGINAL OWNERS.—For the purpose of subsection (a) 
( 1 ) - 
. . 
. 
. 
"(A) in determining the adjusted basis of any grain 
' 
storage facility, the construction, reconstruction, or erection 
of which was begun before January 1, 1953, there shall be 
included only so much of the amount of the adjusted basis 
(computed without regard to this subsection) as is properly 
attributable to such construction, reconstruction, or erection 
after December 31,1952, and 
"(B) in determining the adjusted basis of any facility 
which is a grain storage facility within the meaning of the 
second sentence of subsection (d), there shall be included only 
so much of the amount otherwise included in such basis as 
is properly attributable to the alteration or remodeling. 
If any existing grain storage facility as defined in the first 
sentence of subsection (d) is altered or remodeled as provided 
in the second sentence of subsection (d), the expenditures for 
such remodeling or alteration shall not be applied in adjustment 
of the basis of such existing facility but a separate basis shall be 
computed in respect of such facility as if the part altered or 
remodeled were a new and separate grain storage facility. 
"(2) SUBSEQUENT OWNERS.—For the purpose of subsection (a) 
(2), the adjusted basis of any grain storage facility shall be 
whichever of the following amounts is the smaller: (A) The 
basis (unadjusted) of such facility for the purposes of this section 
in the hands of the transferor, donor, or grantor, adjusted as if 
such facility in the hands of the taxpayer had a substitute basis 
26 use 113. 
within the meaning of section 113 (b) (2) (A), or (B) so much 
of the adjusted basis (for determining gain) of the facility in 
the hands of the taxpayer (as computed without regard to this 
subsection) as is properly attributable to construction, recon-
struction, or erection after December 31,1952. 
"(f) DEPRECIATION DEDUCTION.—^If the adjusted basis of the grain 
storage facility (computed without regard to subsection (e) (exceeds 
the adjusted basis computed under subsection (e), the deduction pro-
26 use 23. 
vided by section 23 (1) shall, despite the provisions of subsection (a) 
(3) of this section, be allowed with respect to such grain storage 
facility as if the adjusted basis for the purpose of such deduction 
were an amount equal to the amount of such excess. 
"(g) LIFE TENANT AND REMAINDERMAN.—In the case of property 
held by one person for life with remainder to another person, the 
amortization deduction provided in subsection (a) shall be computed 
as if the life tenant were the absolute owner of the property and shall 
be allowed to the life tenant." 
(b) TECHNICAL AMENDMENTS.— 
26 use 23. 
(1) Section 23 (t) is hereby amended to read as follows: 
"(t) AMORTIZATION DEDUCTION.—The deduction for amortization 
provided in sections 124,124A, and 124B." 
26 use 172. 
(2) Section 1Y2 is hereby amended by striking out "of emer-
gency facilities". 
26 use 190. 
(3) Section 190 is hereby amended by inserting after "emer-
f
ency facilities" the following: "or grain storage facilities". 
EFFECTIVE DATE.—The amendments made by subsections (a) 
and (b) shall apply only with respect to taxable years ending after 
* *' ' 
the date of the enactment of this Act. 
. 
. 
. , . - , 
. 
1
5
7 S T A T . ] 
PUBLIC LAW 287-AUG. 15, 1953 
623 
SEC. 207. EXCLUSION OF CERTAIN TRANSFERS TAKING EFFECT AT 
DEATH. 
(a) DECEDENTS DYING AFTER FEBRUARY 10, 1939.—Paragraph (1) 
of section 811 (c) (relating to the inclusion of certain interests in the 
^^ ^^c sii. 
decedent's gross estate) is hereby amended by inserting after sub-
paragraph (C) the following: 
"Subparagraph (B) shall not apply to a transfer made before 
March 4, 1931; nor shall subparagraph (B) apply to a transfer 
made after March 3, 1931, and before June 7, 1932, unless the 
,, ? > 
property transferred would have been includible in the decedent's 
gross estate by reason of the amendatory language of the joint 
resolution of March 3, 1931 (46 Stat. 1516)." 
(b) DECEDENTS DYING BEFORE FEBRUARY 11,1939.—For the purposes 
of section 302 (c) of the Revenue Act of 1926, as amended, an interest 
44 stat. 70. 
of a decedent shall not be included in his gross estate as intended to 
take effect in possession or enjoyment at or after his death unless it 
would have been includible as such a transfer under section 811 (c) (2) 
of the Internal Revenue Code, as amended by section 7 of Public 
Law 378, Eighty-first Congress, approved October 25, 1949 (63 Stat. 
891), had such section 811 (c) (2), as so amended, applied to the estate 
26 use sii. 
of such decedent. 
No refund or credit of any overpayment resulting 
from the application of this subsection shall be allowed or made if 
prevented by the operation of the statute of limitations or by any 
other law or rule of law; except that if the determination of the 
Federal estate tax liability in respect of the estate of any decedent 
dying before February 11, 1939, was pending on January 17, 1949, 
in the Tax Court of the United States or in any other court of compe-
tent jurisdiction, or if a decision of the Tax Court of the United 
States or such other court determining such estate tax liability did not 
V 
V' 
become final until on or after January 17, 1949, then refund or credit 
of any overpayment resulting from the application of this subsection 
may, nevertheless, be made or allowed if claim therefor is filed within 
one year from the date of the enactment of this Act, notwithstanding 
section 319 (a) of the Revenue Act of 1926 or any other law or rule 
^4 stat. 84. 
of law which would otherwise prevent the allowance of such refund 
or credit. 
(c) INTEREST.—No interest shall be allowed or paid on any over-
payment resulting from the application of this section with respect to 
any payment made before the date of the enactment of this Act. 
(d) EFFECTIVE DATE.—The amendment made by subsection (a) shall 
apply only with respect to estates of decedents dying after February 
10, 1939. Subsection (b) shall apply only with respect to estates of 
decedents dying before February 11,1939. 
SEC. 208. FAILURE TO RELINQUISH A POWER IN CERTAIN DIS-
ABILITY CASES. 
(a) AMENDMENT OF SECTION 811 (d).—Section 811 (d) (relating to 
26 use an. 
revocable transfers) is hereby amended by inserting after paragraph 
(3) thereof the following new paragraph: 
"(4) EFFECT OF DISABILITY IN CERTAIN CASES.—^For the purposes 
of this subsection, in the case of a decedent who was (for a continu-
ous period beginning not less than three months before December 
31, 1947, and ending with his death) under a mental disability 
to relinquish a power, the term 'power' shall not include a power 
the relinquishment of which on or after January 1, 1940, and on 
or before December 31,1947, would, by reason of section 1000 (e), 
26 use 1000. 
be deemed not to be a transfer of property for the purposes of 
chapter4." 
loVi.^^*^ ^°°°" 
624 
PUBLIC LAW 287-AUG. 15, 1953 
[67 S T A T . 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) shall 
apply only with respect to estates of decedents dying after December 
31,1950. 
SEC. 209. REVERSIONARY INTERESTS IN CASE OF LIFE INSURANCE. 
(a) DECEDENTS DYING AFTER JANUARY 10, 1941, AND BEFORE OCTO-
BER 22,1942.—Effective with respect to estates of decedents dying after 
January 10, 1941, and before October 22, 1942, the proceeds of life 
insurance receivable by beneficiaries other than the executor shall not 
26 use 811. 
be included in the gross estate of a decedent under section 811 (g) of 
the Internal Revenue Code unless such proceeds would have been 
includible under section 404 (c) of the Revenue Act of 1942 (as 
staf.^*l2! ^'*^' ^'^ amended by section 503 (a) of the Revenue Act of 1950) had such 
2
6
* use's 11 note, sectiou 404 (c), as so amended, applied to such estate. 
(b) INTEREST.—No interest shall be allowed or paid on any over-
payment resulting from the application of subsection (a) with respect 
to any payment made before the date of the enactment of this Act. 
SEC. 210. MARITAL DEDUCTION IN CERTAIN CASES WHERE DE-
CEDENT DIED BEFORE APRIL 3, 1948. 
' 
(a) I N GENERAL.—In the case of an interest in property passing 
by will from the decedent, if the surviving spouse is entitled for life 
to all the income from such property, payable annually or at more 
frequent intervals, with power m the surviving spouse to use and 
consume such portion of the property as the surviving spouse may 
need or desire for her (or his) comfortable support and maintenance, 
and with no power in any person other than the surviving spouse to 
appoint any part of such property, then— 
(1) the interest so passing shall, for the purposes of subpara-
62 Stat. 117. 
graph (A) of section 812 (e) (1) of the Internal Revenue Code, 
be considered as passing to the surviving spouse; and 
(2) no part of the interest so passing shall, for the purposes 
of subparagraph (B) (i) of section 812 (e) (1) of the Internal 
Revenue Code, be considered as passing to any person other than 
^ 
the surviving spouse. 
Nothing in this subsection shall be construed to permit the same items 
to be twice deducted. 
(b) ELECTION.—The provisions of subsection (a) shall apply only 
if the surviving spouse files an election under this section with the 
Secretary within one year after the date of the enactment of this Act 
under such regulations as the Secretary shall prescribe. If such 
election is so filed, the property subject to such poAver shall, notwith-
standing any other provision of law, be considered for purposes of 
2 6 use 800-1031. chapters 3 and 4 of the Internal Revenue Code as property as to 
which the surviving spouse had a general power of appointment 
exercisable by deed or will. If the surviving spouse has made an 
election pursuant to this section, the periods of limitation provided 
' 
in chapters 3 and 4 of the Internal Revenue Code on the making of 
an assessment and the beginning of distraint or a proceeding in court 
for collection shall, with respect to any deficiency and interest thereon 
resulting from such election, include one year immediately following 
the date such election is filed, and such assessment and collection may 
be made notwithstanding any provision of law or any rule of law 
which otherwise would prevent such assessment and collection. 
(c) INTEREST.—No interest shall be allowed or paid on any over-
payment resulting from the application of this section. 
(d) EFFECTIVE DATE.—This section shall apply only with respect 
to estates of decedents dying after December 31,1947, and on or before 
67 S T A T . ] 
P U B U C LAW 2 8 7 - A U G . 15, 1963 
625 
the date of the enactment of the Revenue Act of 1948. If refund or 
^j ^l^' //note. 
credit of any overpayment resulting from the application of vSubsec-
tions (a) and (b) is prevented on the date of the enactment of this 
Act, or within one year from such date, by the operation of any law 
or rule of law (other than section 3760 of the Internal Revenue Code, 
26 use 3760. 
relating to closing agreements, and other than section 3761 of such 
26 use 376i. 
code, relating to compromises), refund or credit of such overpayment 
may, nevertheless, be made or allowed if claim therefor is filed within 
one year from the date of the enactment of this Act. 
SEC. 211. MITIGATION OF EFFECT OF STATUTE OF LIMITATIONS. 
(a) AMENDMENT OF SECTION 3801 (b).—Section 3801 (b) (relating 
26 use asoi. 
to circumstances of adjustment) is hereby amended by inserting after 
paragraph (5) the following new paragraphs: 
"(6) Disallows a deduction or credit which should have been 
allowed to, but was not allowed to, the taxpayer for another tax-
able year, or to a related taxpayer; but this paragraph shall apply 
only if (A) the determination became final on or after June 1, 
1952, and (B) credit or refund of the overpayment attributable 
to the deduction or credit which should have been allowed to the 
taxpayer or related taxpayer was not barred, by any law or rule 
of law, at the time the taxpayer first maintained before the Secre- 
, 
tary or the Tax Court of the United States, in writing, that he 
was entitled to such deduction or credit in the taxable year for 
which it is so disallowed; or 
"(7) Requires the exclusion from gross income of an item 
which is includible in the gross income of the taxpayer for 
another taxable year or in the gross income of a related tax-
payer; but this paragraph shall apply only if (A) the determina-
tion became final on or after June 1,1952, and (B) assessment of 
deficiency under section 272 (a) by the Secretary for such other 
26 use 272. 
taxable year or against such related taxpayer was not barred, by 
any law or rule of law, at the time the Secretary first maintained 
in a notice of deficiency sent pursuant to section 272 (a) or before 
the Tax Court of the United States, that such item should be 
included in the gross income of the taxpayer for the taxable year 
to which the determination relates—". 
(b) TECHNICAL AMENDMENTS.— 
(1) Paragraph (5) of section 3801 (b) is hereby amended by 
striking out "transaction—" and inserting in lieu thereof "trans-
action ; or". 
(2) The second sentence of section 3801 (b) is hereby amended 
by striking out "Such" and inserting in lieu thereof "Except in 
cases described in paragraphs (6) and (7), such". 
(c) EFFECTIVE DATE.—^The amendments made by subsections (a) 
and (b) shall be effective as if included in the Internal Revenue Code 
at the time of its enactment. In any case in which the determination 
referred to in paragraph (6) or (7) of section 3801 (b), as amended 
by subsection (a) of this section, became final before the date of the 
enactment of this Act, the one-year period described in section 3801 
(c) shall be extended to include the one-year period beginning with 
the date of the enactment of this Act. 
Approved August 15, 1953. 
26 
use 3801. 
26 
use 3801.