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(B) arises solely by reason of such spouse's interest in community income under the community property laws of the State. (d) Employee defined

For purposes of this section, the term "employee" includes a former employee. In the case of a retirement plan described in paragraph (5) of subsection (a), such term means the individual for whose benefit the plan was established. (Added and amended Pub. L. 85-866, title I, $ $ 23(f), 68(a), Sept. 2, 1958, 72 Stat. 1623, 1659; Pub. L. 87-792, $ 7(j), Oct. 10, 1962, 76 Stat. 830; Mar. 8, 1966, Pub. L. 89-365, $ 2(b), 80 Stat. 33; Dec. 30, 1969, Pub. L. 91-172, title I, § 101(1)(24), 83 Stat. 528; Pub. L. 94-455, title XX, $ 2009(c) (4), (5), Oct. 4, 1976, 90 Stat. 1895, 1896; Pub. L. 97-34, title III, 8311(d)(2), Aug. 13, 1981, 95 Stat. 280.)

EFFECTIVE DATE OF 1981 AMENDMENT Amendment by Pub. L. 97-34 applicable to taxable years beginning after Dec. 31, 1981, see section 311(1)(1) of Pub. L. 97-34, set out as a note under section 219 of this title.

EFFECTIVE DATE OF 1976 AMENDMENT Section 2009(e)(3)(B) of Pub. L. 94-455 provided that: “The amendments made by paragraphs (4) and (5) of subsection (c) (amending this section) shall apply to transfers made after December 31, 1976.”

EFFECTIVE DATE OF 1969 AMENDMENT Amendment by Pub. L. 91-172 effective Jan. 1, 1970, see section 101(k)(1) of Pub. L. 91-172, set out as an Effective Date note under section 4940 of this title.

EFFECTIVE DATE OF 1966 AMENDMENT Amendment by Pub. L. 89-365 applicable with respect to calendar years after 1965, see section 2(c) of Pub. L. 89-365, set out as a note under section 2039 of this title.

EFFECTIVE DATE OF 1962 AMENDMENT Amendment by Pub. L. 87-792 applicable to taxable years beginning after Dec. 31, 1962, see section 8 of Pub. L. 87-792, set out as a note under section 37 of this title.

EFFECTIVE DATE OF 1958 AMENDMENT Amendment of subsecs. (a) and (b) by Pub. L. 85-866, $ 23(f), applicable with respect to calendar years after 1957, see section 23(g) of Pub. L. 85-866, set out as a note under section 403 of this title.

AMENDMENTS 1981-Subsec. (b). Pub. L. 97-34 provided that for purposes of subsec. (b), any deductible employee contributions, within the meaning of par. (5) of section 72(0), shall be considered as made by a person other than the employee.

1976–Subsec. (a)(5). Pub. L. 94-455, $ 2009(cX4XA)(i), added par. (5).

Subsec. (b). Pub. L. 94-455, $ 2009(c)(4)(A)(ii), (B), substituted "(other than paragraphs (4) and (5))" for "(other than paragraph (4))” following "in subsection (a)", "contributions or payments" for "payments or contributions" following "purpose of this subsection", "paragraph (1) or (2) of subsection (a)" for "subsection (a)(1) or (2)" following "plan described in", and "to the extent allowable as a deduction under section 404, be considered to be made by a person other than such individual and, to the extent not so allowable, shall be considered to be made by such individual" for "be considered to be payments or contributions made by the employee" following "paragraph (1) or (2) of subsection (a) shall", as amended.

Subsec. (c). Pub. L. 94-455, $ 2009(c)(5), added subsec. (c). Former subsec. (c) redesignated (d).

Subsec. (d). Pub. L. 94-455, $ $ 2009(c)(4)(A)(iii), (5), redesignated former subsec. (c) as (d), and, as so redesignated, added “In the case of a retirement plan described in paragraph (5) of subsection (a), such term means the individual for whose benefit the plan was established" following “includes a former employee".

1969–Subsec. (a)(3). Pub. L. 91-172 substituted "section 170(b)(1)(A)(ii) or (vi), or which is a religious or ganization (other than a trust)," for "section 503(b) (1), (2), or (3),".

1966—Subsec. (a)(4). Pub. L. 89-365, $ 2(b)(1), added par. (4).

Subsec. (b). Pub. L. 89-365, $ 2(b)(2), inserted “(other than paragraph (4))” after "referred to in subsection (a)".

1962–Subsec. (aX2). Pub. L. 87-792, $ 7(j)(1), substituted "was a plan described in section 403(a)" for "met the requirements of section 401(a)(3), (4), (5), and (6).

Subsec. (b). Pub. L. 87-792, $7(j)(2), inserted sen tence providing, for purposes of this subsection, that payments or contributions on behalf of an individual while he was an employee within the meaning of sec. tion 401(c)(1) made under a trust or plan described in subsection (a)(1) or (2) shall be considered to be payments or contributions made by the employee.

1958–Subsec. (a)(3). Pub. L. 85-866, § 23(f)(2), added par. (3).

Subsec. (b). Pub. L. 85-866, § 23(f)(3), added sentence providing that payments by employer toward purchase of annuity contract shall, to the extent not excludable from gross income, be considered to have been made by employee.

EFFECTIVE DATE Section 68(c) of Pub. L. 85-866 provided that: “The amendments made by this section (adding this section) shall apply with respect to the calendar year 1955 and all calendar years thereafter. For calendar years before 1955, the determination as to whether the exercise or nonexercise by an employee of an election or option described in section 2517 of the Internal Revenue Code of 1954 (as added by subsection (a)) is a transfer for purposes of chapter 4 of the Internal Rev. enue Code of 1939 shall be made as if this section had not been enacted and without inferences drawn from the fact that this section is not made applicable with respect to calendar years before 1955."

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 406, 407 of this title.

8 2518. Disclaimers (a) General rule

For purposes of this subtitle, if a person makes a qualified disclaimer with respect to any interest in property, this subtitle shall apply with respect to such interest as if the interest had never been transferred to such person. (b) Qualified disclaimer defined

For purposes of subsection (a), the term “qualified disclaimer" means an irrevocable and unqualified refusal by a person to accept an interest in property but only if

(1) such refusal is in writing,

(2) such writing is received by the transfercr of the interest, his legal representative, or the holder of the legal title to the property to which the interest relates not later than the date which is 9 months after the later of

EFFECTIVE DATE Section 2009(e)(2) of Pub. L. 94-455 provided that: “The amendments made by subsection (b) (enacting sections 2045 and 2518 of this title, and amending sections 2041(a)(2), 2055(a), 2056 and 2514(b) of this title) shall apply with respect to transfers creating an interest in the person disclaiming made after December 31, 1976."

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 2046, 2614 of this title.

(A) the day on which the transfer creating the interest in such person is made, or

(B) the day on which such person attains age 21,

(3) such person has not accepted the interest or any of its benefits, and

(4) as a result of such refusal, the interest passes without any direction on the part of the person making the disclaimer and passes either

(A) to the spouse of the decedent, or

(B) to a person other than the person making the disclaimer. (c) Other rules

For purposes of subsection (a)-
(1) Disclaimer of undivided portion of interest

A disclaimer with respect to an undivided portion of an interest which meets the requirements of the preceding sentence shall be treated as a qualified disclaimer of such portion of the interest. (2) Powers

A power with respect to property shall be treated as an interest in such property. (3) Certain transfers treated as disclaimers

A written transfer of the transferor's entire interest in the property

(A) which meets requirements similar to the requirements of paragraphs (2) and (3) of subsection (b), and

(B) which is to a person or persons who would have received the property had the transferor made a qualified disclaimer

(within the meaning of subsection (b)), shall be treated as a qualified disclaimer. (Added Pub. L. 94-455, title XX, $ 2009(b)(1), Oct. 4, 1976, 90 Stat. 1893, and amended Pub. L. 95-600, title VII, § 702(m)(1), Nov. 6, 1978, 92 Stat. 2935; Pub. L. 97-34, title IV, § 426(a), Aug. 13. 1981, 95 Stat. 318; Pub. L. 97-448, title I, $ 104(e), Jan. 12, 1983, 96 Stat. 2384.)

AMENDMENTS 1983–Subsec. (c)(3). Pub. L. 97-448 substituted "A written transfer" for "For purposes of subsection (a), a written transfer".

1981-Subsec. (c)(3), Pub. L. 97-34 added par. (3).

1978–Subsec. (b)(4). Pub. L. 95-600 added provision relating to the spouse of the decedent.

8 2519. Dispositions of certain life estates (a) General rule

For purposes of this chapter and chapter 11, any disposition of all or part of a qualifying income interest for life in any property to which this section applies shall be treated as a transfer of all interests in such property other than the qualifying income interest. (b) Property to which this subsection applies

This section applies to any property if a deduction was allowed with respect to the transfer of such property to the donor

(1) under section 2056 by reason of subsection (b)(7) thereof, or

(2) under section 2523 by reason of subsection (f) thereof. (c) Cross reference

For right of recovery for gift tax in the case of proper. ty treated as transferred under this section, see section

2207 A(b). (Added Pub. L. 97-34, title IV, $ 403(d)(3)(B)(i), Aug. 13, 1981, 95 Stat. 304, and amended Pub. L. 97-448, title I, § 104(a)(3), (7), Jan. 12, 1983, 96 Stat. 2380, 2381.)

AMENDMENTS 1983–Pub. L. 97-448, § 104(a)(3)(B), amended the directory language of Pub. L. 97-34, $ 403(d)(3)(B)(i), to clarify that this section be added at the end of subchapter B of chapter 12, rather than at the end of subchapter B of chapter 11, and did not involve any change in the text.

Subsec. (a). Pub. L. 97-448, $ 104(a)(3)(A), substituted "For purposes of this chapter and chapter 11, any disposition" for "Any disposition" and "treated as a transfer of all interests in such property other than the qualifying income interest" for "treated as a transfer of such property".

Subsec. (c). Pub. L. 97-448, $ 104(a)(7), added subsec. (c).

EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97-448 effective, except as otherwise provided, as if it had been included in the provision of the Economic Recovery Tax Act of 1981, Pub. L. 97-34, to which such amendment relates, see section 109 of Pub. L. 97-448, set out as a note under section 1 of this title.

EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97-448 effective, except as otherwise provided, as if it had been included in the provision of the Economic Recovery Tax Act of 1981, Pub. L. 97-34, to which such amendment relates, see section 109 of Pub. L. 97-448, set out as a note under section 1 of this title.

EFFECTIVE DATE OF 1981 AMENDMENT Section 426(b) of Pub. L. 97-34 provided that: “The amendment made by subsection (a) (amending this section) shall apply to transfers creating an interest in the person disclaiming made after December 31, 1981."

EFFECTIVE DATE OF 1978 AMENDMENT Section 702(m)(2) of Pub. L. 95-600 provided that: "The amendment made by paragraph (1) (amending this section) shall apply to transfers creating an interest in the person disclaiming made after December 31, 1976."

EFFECTIVE DATE Section applicable to gifts made after Dec. 31, 1981, see section 403(e)(2) of Pub. L. 97-34, set out as an Effective Date of 1981 Amendment note under section 2056 of this title.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 2044, 2207A, 2523 of this title.

Subchapter C—Deductions

Sec.
(2521. Repealed.)
2522.

Charitable and similar gifts.
2523. Gift to spouse.
2524. Extent of deductions.

AMENDMENTS 1976–Pub. L. 94-455, title xx, $ 2001(c)(2)(B)(ii), Oct. 4, 1976, 90 Stat. 1853, struck out item 2521 relating to specific exemption.

SUBCHAPTER REFERRED TO IN OTHER SECTIONS This subchapter is referred to in section 2503 of this title. (2521. Repealed. Pub. L. 94-455, title XX, 8 2001(b)(3),

Oct. 4, 1976, 90 Stat. 1849) Section, act Aug. 16, 1954, ch. 736, 68A Stat. 410, allowed a deduction, in the case of a citizen or resident, an exemption of $30,000, less amounts claimed and allowed for calendar year 1932 and calendar years intervening between that year and year for which tax is being computed. 8 2522. Charitable and similar gifts (a) Citizens or residents

In computing taxable gifts for the calendar year, there shall be allowed as a deduction in the case of a citizen or resident the amount of all gifts made during such year to or for the use of

(1) the United States, any State, or any political subdivision thereof, or the District of Columbia, for exclusively public purposes;

(2) a corporation, or trust, or community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes, or to foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment), including the encouragement of art and the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual, which is not disqualified for tax exemption under section 501(c)(3) by reason of attempting to influence legislation, and which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of any candidate for public office;

(3) a fraternal society, order, or association, operating under the lodge system, but only if such gifts are to be used exclusively for religious, charitable, scientific, literary, or educational purposes, including the encouragement of art and the prevention of cruelty to children or animals;

(4) posts or organizations of war veterans, or auxiliary units or societies of any such posts or organizations, if such posts, organizations, units, or societies are organized in the United States or any of its possessions, and if no part of their net earnings insures to the benefit of any private shareholder or individ

ual. Rules similar to the rules of section 501(j) shall apply for purposes of paragraph (2),

(b) Nonresidents

In the case of a nonresident not a citizen of the United States, there shall be allowed as a deduction the amount of all gifts made during such year to or for the use of

(1) the United States, any State, or any political subdivision thereof, or the District of Columbia, for exclusively public purposes;

(2) a domestic corporation organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes, including the encouragement of art and the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual, which is not disqualified for tax exemption under section 501(c)(3) by reason of attempting to influence legislation, and which does not participate in, or intervene in (in. cluding the publishing or distributing of statements), any political campaign on behalf of any candidate for public office;

(3) a trust, or community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes, including the encouragement of art and the prevention of cruelty to children or animals, no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation, and which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of any candidate for public office; but only if such gifts are to be used within the United States exclusively for such purposes;

(4) a fraternal society, order, or association, operating under the lodge system, but only if such gifts are to be used within the United States exclusively for religious, charitable, scientific, literary, or educational purposes, including the encouragement of art and the prevention of cruelty to children or animals;

(5) posts or organizations of war veterans, or auxiliary units or societies of any such posts or organizations, if such posts, organizations, units, or societies are organized in the United States or any of its possessions, and if no part of their net earnings inures to the benefit of any private shareholder or individ

ual. (c) Disallowance of deductions in certain cases

(1) No deduction shall be allowed under this section for a gift to of 'for the use of an organization or trust described in section 508(d) or 4948(c)(4) subject to the conditions specified in such sections.

(2) Where a donor transfers an interest in property (other than an interest described in section 170(f)(3)(B)) to a person, or for a use, described in subsection (a) or (b) and an interest in the same property is retained by the donor, or is transferred or has been transferred (for less than an adequate and full consideration in money or money's worth) from the donor to a person, or for a use, not de

So in original. Probably should be "or".

scribed in subsection (a) or (b), no deduction shall be allowed under this section for the interest which is or has been transferred to the person, or for the use, described in subsection (a) or (b), unless

(A) in the case of a remainder interest, such interest is in a trust which is a charitable remainder annuity trust or a charitable remainder unitrust (described in section 664) or a pooled income fund (described in section 642(c)(5)), or

(B) in the case of any other interest, such interest is in the form of a guaranteed annuity or is a fixed percentage distributed yearly of the fair market value of the property (to be determined yearly).

(3) Rules similar to the rules of section 2055(e)(4) shall apply for purposes of para

graph (2). (d) Cross references

(1) For exemption of certain gifts to or for the benefit of the United States and for rules of construction with respect to certain bequests, see section 2055(0).

(2) For treatment of gifts to or for the use of Indian tribal governments (or their subdivisions), see section

7871. (Aug. 16, 1954, ch. 736, 68A Stat. 410; Sept. 2, 1958, Pub. L. 85-866, title I. 830(d), 72 Stat. 1631; Dec. 30, 1969, Pub. L. 91-172, title II, 8 201(d)(3), (4)(C), (D), 83 Stat. 561, 562; Dec. 31, 1970, Pub. L. 91-614, title I, § 102(c)(2), 84 Stat. 1841; Oct. 4, 1976, Pub. L. 94-455, title XII, 8$ 1307(d)(1)(B)(iv), (v), 1313(b)(3), title XIX, $ 1902(a)(11), (12)(D), title XXI, $ 2124(e)(3), 90 Stat. 1727, 1730, 1805, 1806, 1920; Aug. 13, 1981, Pub. L. 97-34, title IV, 88423(b), 442(c), 95 Stat. 317, 322; Sept. 3, 1982, Pub. L. 97-248, title II, § 286(b)(3), 96 Stat. 570; Jan. 14, 1983, Pub. L. 97-473, title II, $ 202(b)(7), 96 Stat. 2610.)

fluence legislation” for “no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation" following "shareholder or individual".

Subsec. (c)2). Pub. L. 94-455, $ 2124(e)3), substitut. ed “(other than an interest described in section 170(1X3)(B))" for “(other than a remainder interest in a personal residence or farm or an undivided portion of the donor's entire interest in property)" following "an interest in property".

Subsec. (d). Pub. L. 94-455, $ 1902(a)(11), substituted subsec. (d) for former subsec. (d), pars. (1) through (10), which dealt with cross references to specific exemptions and rules of construction for gifts to the United States and its instrumentalities.

1970–Pub. L. 91-614 substituted “quarter" for "year" in three places.

1969–Subsec. (aX2). Pub. L. 91-172, & 201(d)(4XC), added non-participation and non-intervention in political campaigns as an additional qualification.

Subsec. (b)2). Pub. L. 91-172, § 201(d)(4XDXi), added non-participation and non-intervention in political campaigns as an additional qualification.

Subsec. (bX3). Pub. L. 91-172, $ 2010d)(4)(DXii), added non-participation and non-intervention in political campaigns as an additional qualification.

Subsec. (c). Pub. L. 91-172, § 201(d)(3), substituted substantive provisions for simple reference to sections 503 and 681 of this title in which such substantive provisions were formerly set out.

1958–Subsec. (c). Pub. L. 85-866 substituted "503" for "504".

EFFECTIVE AND TERMINATION DATES OF 1983

AMENDMENT Amendment by title II of Pub. L. 97-473 insofar as it relates to this chapter (amending this section) applicable to gifts made after Dec. 31, 1982, and before Jan. 1, 1985, see section 204(4) of Pub. L. 97-473, set out as an Effective and Termination Dates note under section 7871 of this title.

EFFECTIVE DATE OF 1982 AMENDMENT Amendment by Pub. L. 97-248 effective Oct. 5, 1976, see section 286(c) of Pub. L. 97-248, set out as a note under section 501 of this title. S

EFFECTIVE DATE OF 1981 AMENDMENT Section 423(c)(2) of Pub. L. 97-34 provided that: "The amendment made by subsection (b) (enacting subsec. (c)(3) of this section) shall apply to transfers after December 31, 1981."

Amendment by section 442(c) of Pub. L. 97-34 applicable with respect to gifts made after Dec. 31, 1981, see section 442(e) of Pub. L. 97-34, set out as a note under section 2501 of this title.

AMENDMENTS 1983–Subsec. (d). Pub. L. 97-473 designated existing provisions as par. (1), substituted "bequests" for "gifts” the second time appearing in par. (1) as so designated, and added par. (2).

1982–Subsec. (a). Pub. L. 97-248 added provision that rules similar to the rules of section 501(j) of this title apply for purposes of par. (2).

1981-Subsec. (a). Pub. L. 97-34, § 442(c), in provision preceding par. (1) substituted "year" for "quarter" in two instances.

Subsec. (b). Pub. L. 97-34, $ 442(c), in provision preceding par. (1) substituted "year" for "quarter".

Subsec. (c)(3). Pub. L. 97-34, § 423(b), added par. (3).

1976–Subsec. (a)(1). Pub. L. 94-455, $ 1902(a)(12)(D). struck out “Territory” following "any State".

Subsec. (a)(2). Pub. L. 94-455, $$ 1307(d)(1)(B)(iv), 1313(b)(3), substituted "which is not disqualified for tax exemption under section 501(c)(3) by reason of attempting to influence legislation" for "no substantial part of the activities of which is carrying on propagan. da, or otherwise attempting, to influence legislation" following "shareholder or individual" and added “or to foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment)" following "or educational purposes”.

Subsec. (b)(1). Pub. L. 94-455, $ 1902(a)(12)(D), struck out “Territory" following "any State".

Subsec. (b)(2). Pub. L. 94-455, $ 1307(d)(1)(B)(v), substituted "which is not disqualified for tax exemption under section 501(c)(3) by reason of attempting to in

EFFECTIVE DATE OF 1976 AMENDMENT Amendment of subsec. (c)(2) by section 2124(e)(3) of Pub. L. 94-455 applicable with respect to contributions or transfers made after June 13, 1976, see section 2124(e)(4) of Pub. L. 94-455, set out as a note under section 170 of this title.

EFFECTIVE DATE OF 1970 AMENDMENT Amendment by Pub. L. 91-614 applicable with re. spect to gifts made after Dec. 31, 1970, see section 102(e) of Pub. L. 91-614, set out as a note under section 2501 of this title.

EFFECTIVE DATE OF 1969 AMENDMENT Amendment of subsecs. (a) 2) and (b)(2), (3) by section 201(d)(4)(C), (D) of Pub. L. 91-172 applicable to gifts and transfers made after Dec. 31, 1969, see section 201(g)(4)(E) of Pub. L. 91-172, set out as a note under section 170 of this title.

Amendment of subsec. (c) by section 201(d)(3) of Pub. L. 91-172 applicable to gifts made after Dec. 31, 1969, except that the amendment of par. (2) of subsec. (c), applicable to gifts made after July 31, 1969, see section 201(gX4WD) of Pub. L. 91-172, set out as a note under section 170 of this title. CHARITABLE LEAD TRUSTS AND CHARITABLE REMAINDER

TRUSTS IN CASE OF INCOME AND GIFT TAXES For inclusion of provisions comparable to section 2055(eX3) of this title in this section, see section 514(b) of Pub. L. 95-600, set out as a note under section 2055 of this title.

CROSS REFERENCES Calendar quarter defined, see section 2502 of this title.

Disallowance of certain charitable, etc., deductions, see sections 503, 681 of this title.

Estate tax credit for gift tax, see section 2012 of this title.

Extent of deductions, see section 2524 of this title. Gifts and bequests accepted by the Secretary of Commerce as gifts and bequests to United States, see section 1522 of Title 15, Commerce and Trade.

Income tax deductions for charitable, etc., contributions and gifts, see section 170 of this title. Taxable gifts defined, see section 2503 of this title.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 508, 1015, 2012. 2503, 2602, 4947, 4948, 7871 of this title; title 12 section 3051; title 16 section 1285; title 22 sections 2876, 3307.

8 2523. Gift to spouse
(a) Allowance of deduction

Where a donor who is a citizen or resident transfers during the calendar year by gift an interest in property to a donee who at the time of the gift is the donor's spouse, there shall be allowed as a deduction in computing taxable gifts for the calendar year an amount with respect to such interest equal to its value. (b) Life estate or other terminable interest

Where, on the lapse of time, on the occur. rence of an event or contingency, or on the failure of an event or contingency to occur, such interest transferred to the spouse will terminate or fail, no deduction shall be allowed with respect to such interest

(1) if the donor retains in himself, or transfers or has transferred (for less than an adequate and full consideration in money or money's worth) to any person other than such donee spouse (or the estate of such spouse), an interest in such property, and if by reason of such retention or transfer the donor (or his heirs or assigns) or such person (or his heirs or assigns) may possess or enjoy any part of such property after such termination or failure of the interest transferred to the donee spouse; or

(2) if the donor immediately after the transfer to the donee spouse has a power to appoint an interest in such property which he can exercise (either alone or in conjunction with any person) in such manner that the appointee may possess or enjoy any part of such property after such termination or failure of the interest transferred to the donee spouse. For purposes of this paragraph, the donor shall be considered as having immediately after the transfer to the donee spouse such

power to appoint even though such power cannot be exercised until after the lapse of time, upon the occurrence of an event or contingency, or on the failure of an event or con

tingency to occur. An exercise or release at any time by the donor, either alone or in conjunction with any person, of a power to appoint an interest in property, even though not otherwise a transfer, shall, for purposes of paragraph (1), be considered as a transfer by him. Except as provided in subsection (e), where at the time of the transfer it is impossible to ascertain the particular person or persons who may receive from the donor an interest in property so transferred by him, such interest shall, for purposes of paragraph (1), be considered as transferred to a person other than the donee spouse. (c) Interest in unidentified assets

Where the assets out of which, or the proceeds of which, the interest transferred to the donee spouse may be satisfied include a particular asset or assets with respect to which no deduction would be allowed if such asset or assets were transferred from the donor to such spouse, then the value of the interest transferred to such spouse shall, for purposes of subsection (a), be reduced by the aggregate value of such particular assets. (d) Joint interests

If the interest is transferred to the donee spouse as sole joint tenant with the donor or as tenant by the entirety, the interest of the donor in the property which exists solely by reason of the possibility that the donor may survive the donee spouse, or that there may occur a severance of the tenancy, shall not be considered for purposes of subsection (b) as an interest retained by the donor in himself. (e) Life estate with power of appointment in donee

spouse Where the donor transfers an interest in property, if by such transfer his spouse is entitled for life to all of the income from the entire interest, or all the income from a specific portion thereof, payable annually or at more frequent intervals, with power in the donee spouse to appoint the entire interest, or such specific portion (exercisable in favor of such donee spouse, or of the estate of such donee spouse, or in favor of either, whether or not in each case the power is exercisable in favor of others), and with no power in any other person to appoint any part of such interest, or such portion, to any person other than the donee spouse

(1) the interest, or such portion, so transferred shall, for purposes of subsection (a) be considered as transferred to the donee spouse, and

(2) no part of the interest, or such portion, so transferred shall, for purposes of subsection (b)(1), be considered as retained in the donor or transferred to any person other

than the donee spouse. This subsection shall apply only if, by such transfer, such power in the donee spouse to appoint the interest, or such portion, whether ex

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