,i  #aaf? ,,congress  #a/ ,session  ,h4 
,r4 #cibb  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,july #bc1 #bjai,ms4  
,pressley introduc$ ! foll[+ bill2 :i* 0
 ref]r$ to ! ,committee on ,ways &      
,means  ,a ,,bill  ,to e/abli% ,am]ican 
opportunity acc\nts1 to modify e/ate &  
gift tax rules1 to re=m ! taxation (    
capital income1 & = o!r purposes4  #a4  
,%ort title2 table ( cont5ts  7a7 ,%ort 
title ,?is ,act may be cit$ z ! ,am]ican
 ,opportunity ,acc\nts ,act4  7b7 ,table
 ( cont5ts ,! table ( cont5ts = ?is ,act
 is z foll[s3  ,sec4 #a4 ,%ort title2   
table ( cont5ts4 ,,title ,i--,am]ican   
opportunity acc\nts ,sec4 #aja4         
,def9itions4 ,sec4 #ajb4 ,am]ican       
,opportunity ,fund4 ,sec4 #ajc4 ,,ao    
acc\nts4 ,sec4 #ajd4 ,assignm5t1        
ali5ation1 & treatm5t ( deceas$         
individuals4 ,sec4 #aje4 ,rules gov]n+  
,,ao acc\nts relat+ to inve/m5t1        
acc\nt+1 & report+4 ,sec4 #ajf4 ,am]ican
 ,opportunity ,fund ,bo>d4 ,sec4 #ajg4  
,fiduci>y responsibilities4 ,sec4 #ajh4 

,acc\nts disreg>d$ 9 det]m9+ eligibility
 = ,f$]al b5efits4 ,sec4 #aji4 ,reports4
 ,sec4 #aaj4 ,programs = promot+        
f9ancial capability4 ,sec4 #aaa4 ,tax   
treatm5t4 ,,title ,,ii--,rev5ue         
provisions ,subtitle ,a--,e/ate & gift  
tax provisions ,sec4 #bja4 ,modification
 ( e/ate tax rate & basic exclusion     
am\nt4 ,sec4 #bjb4 ,requir$ m9imum      
#aj-ye> t]m1 etc41 = grantor reta9$     
annuity tru/s4 ,sec4 #bjc4 ,c]ta9       
transf] tax rules applicable to grantor 
tru/s4 ,sec4 #bjd4 ,simplify+ gift tax  
exclusion = annual gifts4 ,sec4 #bje4   
,modification ( rules = value ( c]ta9   
f>m real prop]ty4 ,subtitle ,b--,re=m ( 
taxation ( capital income ,sec4 #baa4   
,increase 9 capital ga9s rate4 ,sec4    
#bab4 ,deem$ realization ( capital ga9s 
at "t ( gift or dea?4 ,sec4 #bac4       
,exclusion ( c]ta9 am\nts ( realiz$     
capital ga94 ,sec4 #bad4 ,ext5sion ( "t 
= paym5t ( tax4 ,sec4 #bae4 ,waiv] (    
p5alty = und]paym5t ( e/imat$ tax4 ,sec4
 #baf4 ,effective date4  ,i ,am]ican    

opportunity acc\nts  #aja4 ,def9itions  
,= purposes ( ?is title-- 7#a7 ,am]ican 
,opportunity ,fund ,! t]m ,am]ican      
,opportunity ,fund means ! fund e/abli%$
 "u section #ajb4  7#b7 ,,ao acc\nt ,!  
t]m ,,ao acc\nt means an ,am]ican       
opportunity acc\nt e/abli%$ "u section  
#ajc4  7#c7 ,secret>y ,! t]m ,secret>y  
means ! ,secret>y ( ! ,treasury or !    
,secret>y's delegate4  7#d7 ,am]ican    
,opportunity ,fund ,bo>d ,! t]m ,am]ican
 ,opportunity ,fund ,bo>d means ! bo>d  
e/abli%$ pursuant to section #ajf4  7#e7
 ,executive ,director ,! t]m ,executive 
,director means ! executive director    
appo9t$ pursuant to section #ajf4  #ajb4
 ,am]ican ,opportunity ,fund  7a7       
,e/abli%m5t ,!re is e/abli%$ 9 !        
,treasury ( ! ,unit$ ,/ates a fund to be
 kn[n z ! ,am]ican ,opportunity ,fund4  
7b7 ,am\nts held by ,fund ,! ,am]ican   
,opportunity ,fund consi/s ( ! sum ( all
 am\nts paid into ! ,fund "u ?is title1 
increas$ by ! total net e>n+s f         
inve/m5ts ( sums held 9 ! ,fund or r$uc$

 by ! total net losses f inve/m5ts (    
sums held 9 ! ,fund1 & r$uc$ by ! total 
am\nt ( paym5ts made f ! ,fund 7includ+ 
paym5ts = adm9i/rative exp5ses74  7c7   
,use ( ,fund  7#a7 ,9 g5]al ,! sums 9 ! 
,am]ican ,opportunity ,fund are         
appropriat$ & %all rema9 available )\t  
fiscal ye> limitation--  7,a7 to make   
contributions to ,,ao acc\nts2  7,b7 to 
inve/ "u section #aje2  7,c7 to make    
di/ributions 9 accordance ) ?is title2  
7,d7 to pay ! adm9i/rative exp5ses (    
c>ry+ out ?is title2 &  7,e7 to pur*ase 
insurance z provid$ 9 section           
#ajg7;c77#b74  7#b7 ,exclusive purposes 
,! sums 9 ! ,am]ican ,opportunity ,fund 
%all n be appropriat$ = any purpose o!r 
?an ! purposes specifi$ 9 ?is section & 
may n be us$ = any o!r purpose4  7d7    
,transf]s to ,am]ican ,opportunity ,fund
 ,! ,secret>y %all make transf]s f !    
g5]al fund ( ! ,treasury to ! ,am]ican  
,opportunity ,fund z foll[s3  7#a7      
,initial contribution = eligible        
individuals born aft] ,decemb] #ca1     

#bjai ,^u receipt ( a c]tification "u   
section #ajc7;b77#b7 ) respect to an    
individual born aft] ,decemb] #ca1      
#bjai1 ! ,secret>y %all transf] #a1jjj  
to ! ,,ao acc\nt ( ! individual4  7#b7  
,annual contributions  7,a7 ,9 g5]al    
,ea* ye> :i* occurs aft] ! ye> 9 :i* an 
,,ao acc\nt is e/abli%$ = an eligible   
individual & be=e ! ye> ! eligible      
individual atta9s ! age ( #ah1 !        
,secret>y %all transf] ! annual         
contribution am\nt to ! ,,ao acc\nt ( ! 
individual4  7,b7 ,annual contribution  
am\nt ,! annual contribution am\nt %all 
be ! am\nt su* t ! annual contribution  
am\nt = any taxpay] ^: h\sehold income  
is )9 an income ti] specifi$ 9 ! foll[+ 
table %all decrease1 on a slid+ scale 9 
a l9e> mann]1 f ! initial am\nt to !    
f9al am\nt specifi$ 9 su* table = su*   
income ti]3  ,9 ! case ( h\sehold income
 7express$ z a p]c5t ( ! pov]ty l9e7 )9 
! foll[+ income ti]3,! initial am\nt    
is--,! f9al am\nt is--  ,up to #ajj     
p]c5t#b1jjjb1jjj #ajj p]c5t up to #abe  

p]c5t#b1jjja1ejj #abe p]c5t up to #age  
p]c5t#a1ejja1jjj #age p]c5t up to #bbe  
p]c5t#a1jjjejj #bbe p]c5t up to #cbe    
p]c5t#ejjbej #cbe p]c5t up to #ejj      
p]c5t#bejj #ejj p]c5t or m#jj  7,c7     
,applicable h\sehold income2 pov]ty l9e 
,= purposes ( ?is p>agraph-- 7i7        
,applicable h\sehold income ,! t]m      
applicable h\sehold income means        
h\sehold income 7z def9$ 9 section      
#cf;,b7d7 ( ! ,int]nal ,rev5ue ,code (  
#aihf71 except t--  7,i7 ) respect to   
any cal5d> ye>1 ! ,secret>y %all use !  
income ( ! mo/ rec5t taxable ye> = :i*  
in=mation is available2 &  7,,ii7 9     
det]m9+ h\sehold income ! ,secret>y %all
 aggregate ! income ( m>ri$ individuals 
fil+ sep>ate tax returns4  7ii7 ,pov]ty 
l9e ,! t]m pov]ty l9e has ! mean+ giv5  
su* t]m "u section #cf;,b7d7 ( !        
,int]nal ,rev5ue ,code ( #aihf4  7,d7   
,au?ority to provide tax in=mation  7i7 
,9 g5]al ,section #fajc7l7 ( ! ,int]nal 
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new p>agraph3  7#bc7  

,disclosure ( return in=mation to c>ry  
out eligibility requirem5ts = c]ta9     
programs  7,a7 ,9 g5]al ,! ,secret>y    
%all disclose to (fic]s & employees ( ! 
,dep>tm5t ( ,treasury or ! ,am]ican     
,opportunity ,fund ,bo>d return         
in=mation ( any taxpay] ^: income is    
relevant 9 det]m9+ any annual           
contribution to an ,am]ican ,opportunity
 ,acc\nt "u section #ajb ( ! ,am]ican   
,opportunity ,acc\nts ,act4 ,su* return 
in=mation %all be limit$ to--  7i7      
taxpay] id5tity in=mation ) respect to  
su* taxpay]1  7ii7 ! fil+ /atus ( su*   
taxpay]1  7iii7 ! numb] ( individuals = 
:om a d$uction is all[$ "u section #aea 
) respect to ! taxpay] 7includ+ !       
taxpay] & ! taxpay]'s sp\se71  7iv7 !   
modifi$ adju/$ gross income 7z def9$ 9  
section #cf;,b7 ( su* taxpay]1 ( any    
sp\se ( su* taxpay] :o fil$ a sep>ate   
return1 & ( ea* ( ! o!r individuals     
includ$ "u clause 7iii7 :o are requir$  
to file a return ( tax impos$ by *apt]  
#a = ! taxable ye>1  7v7 su* o!r        

in=mation z is prescrib$ by ! ,secret>y 
by regulation z might indicate :e!r !   
taxpay] is eligible = su* an annual     
contribution 7& ! am\nt !re(71 &  7vi7 !
 taxable ye> ) respect to :i* ! prec$+  
in=mation relates or1 if applicable1 !  
fact t su* in=mation is n available4    
7,b7 ,re/riction on use ( disclos$      
in=mation ,return in=mation disclos$ "u 
subp>agraph 7,a7 may be us$ by (fic]s & 
employees ( ! ,dep>tm5t ( ,treasury or !
 ,am]ican ,opportunity ,fund ,bo>d = !  
purposes (1 & to ! ext5t necess>y 9     
e/abli%+ eligibility =1 & v]ify+ !      
appropriate am\nt (1 any annual         
contribution describ$ 9 subp>agraph     
7,a74  4  7ii7 ,proc$ures & recordkeep+ 
relat$ to disclosures ,p>agraph 7#d7 (  
section #fajc7p7 ( su* ,code is am5d$ by
 /rik+ or 7#bb7 ea* place x appe>s &    
ins]t+ 7#bb71 or 7#bc74  7,e7 ,/udy on  
incorporation ( o!r weal? factors ,n    
lat] ?an #b ye>s aft] ! date ( !        
enactm5t ( ?is ,act1 ! ,comptroll]      
,g5]al %all submit to ,congress & !     

,secret>y ( ,treasury a report on !     
feasibility & di/ributive impacts ( a   
new measure = det]m9+ ! am\nt ( ! annual
 contribution am\nt "u ?is p>agraph bas$
 on family weal?1 total assets1 & ov]all
 net wor?4 ,su* measure may--  7i7      
include f9ancial assets1 ! value (      
family home1 retirem5t acc\nts1 bus9ess 
& entrepr5eurial v5tures1 pot5tial      
future inh]itances1 & any o!r assets or 
debts2 &  7ii7 cont9ue to factor 9      
curr5t or pa/ income to ! ext5t su*     
in=mation is useful 9 e/imat+ ov]all    
h\sehold weal?4  7#c7 ,adju/m5t =       
inflation  7,a7 ,9 g5]al ,= ea* cal5d>  
ye> beg9n+ aft] #bjbj1 ea* ( ! doll>    
am\nts "u p>agraphs 7#a7 & 7#b77;,b77i7 
%all be increas$ by su* doll> am\nt     
multipli$ by ! co/-(-liv+ adju/m5t      
det]m9$ "u section #a7;f77#c7 ( !       
,int]nal ,rev5ue ,code ( #aihf det]m9$  
by sub/itut+ cal5d> ye> #bjai = cal5d>  
ye> #bjaf 9 subp>agraph 7,a77ii7 !re(4  
7,b7 ,r\nd+ ,if any am\nt adju/$ "u     
p>agraph 7#a7 is n a multiple ( #ej1 su*

 am\nt %all be r\nd$ to ! next l[e/     
multiple ( #ej4  7e7 ,prohibition on    
,use ( ,payroll ,taxes ,to ,fund ,,ao   
acc\nts ,! ,am]ican ,opportunity ,fund &
 ,,ao acc\nts are :olly sep>ate & unique
 f ! ,social ,security sy/em4 ,no am\nt 
f any tax on employm5t may be contribut$
 to ! ,am]ican ,opportunity ,fund or    
,,ao acc\nts4  #ajc4 ,,ao acc\nts  7a7  
,9 g5]al  7#a7 ,e/abli%m5t ,! ,executive
 ,director %all e/abli% 9 ! ,am]ican    
,opportunity ,fund an acc\nt 7to be kn[n
 z an ,am]ican ,opportunity acc\nt or an
 ,,ao acc\nt7 = ea* eligible individual 
c]tifi$ "u subsection 7b74 ,ea* su*     
acc\nt %all be id5tifi$ to its acc\nt   
hold] by means ( a unique p]sonal       
id5tifi] curr5tly recogniz$ by !        
,int]nal ,rev5ue ,s]vice & %all rema9 9 
! ,am]ican ,opportunity ,fund4  7#b7    
,acc\nt balance ,! balance 9 an acc\nt  
hold]'s ,,ao acc\nt at any "t is !      
excess (-- 7,a7 ! sum (--  7i7 all      
deposits made into ! ,am]ican           
,opportunity ,fund & cr$it$ to ! acc\nt 

"u p>agraph 7#c72 &  7ii7 ! total am\nt 
( allocations made to & r$uctions made 9
 ! acc\nt pursuant to p>agraph 7#d72 ov]
  7,b7 ! am\nts paid out ( ! acc\nt )   
respect to su* individual "u subsection 
7c74  7#c7 ,cr$it+ ( contributions      
,pursuant to regulations :i* %all be    
prescrib$ by ! ,executive ,director1 !  
,executive ,director %all cr$it to ea*  
,,ao acc\nt ! am\nts paid into !        
,am]ican ,opportunity ,fund "u section  
#ajb7;d7 :i* are attributable to !      
acc\nt hold] ( su* acc\nt4  7#d7        
,allocation ( e>n+s & losses ,!         
,executive ,director %all allocate to   
ea* ,,ao acc\nt an am\nt equal to ! net 
e>n+s & net losses f ea* inve/m5t ( sums
 9 ! ,am]ican ,opportunity ,fund :i* are
 attributable1 on a pro rata basis1 to  
sums cr$it$ to su* acc\nt1 r$uc$ by an  
appropriate %>e ( ! adm9i/rative exp5ses
 paid out ( ! net e>n+s1 z det]m9$ by ! 
,executive ,director4  7b7 ,eligible    
individual ,= purposes ( ?is title--    
7#a7 ,9 g5]al ,! t]m eligible individual

 means any individual :o--  7,a7 0 born 
aft] ,decemb] #ca1 #bjjc2  7,b7 has n   
yet atta9$ ! age ( #ah ye>s2 &  7,c7 has
 a valid1 unique1 ,f$]al ,gov]nm5t issu$
 id5tification numb] recogniz$ by !     
,int]nal ,rev5ue ,s]vice4  7#b7         
,c]tification ( acc\nt hold]s  7,a7     
,automatic c]tification = c]ta9         
individuals born aft] ,decemb] #ca1     
#bjai ,on any date aft] ,decemb] #ca1   
#bjai1 on :i* an eligible individual is 
issu$ a social security acc\nt numb] "u 
section #bjc7;c77#b7 ( ! ,social        
,security ,act1 ! ,commission] ( ,social
 ,security %all c]tify to ! ,executive  
,director & ! ,secret>y ( ! ,treasury ! 
"n (1 & social security numb] issu$ to1 
su* eligible individual4  7,b7 ,o!r     
individuals ,9 ! case ( an eligible     
individual :o is n c]tifi$ "u           
subp>agraph 7,a71 su* individual may    
reque/ ! e/abli%m5t an ,,ao acc\nt "u   
?is subp>agraph by application to !     
,executive ,director1 & ! ,executive    
,director %all c]tify su* individual "u 

?is subp>agraph4  7c7 ,re/rictions on   
di/ributions  7#a7 ,age-relat$          
re/rictions  7,a7 ,9 g5]al ,except z    
o!rwise provid$ 9 ?is p>agraph1 no am\nt
 may be di/ribut$ f an ,,ao acc\nt be=e 
! date on :i* ! acc\nt hold] atta9s !   
age ( #ah4  7,b7 ,high] education       
exp5ses ,subp>agraph 7,a7 %all n apply  
to am\nts paid = qualifi$ tuition &     
relat$ exp5ses 7z def9$ 9 section       
#be;,a7f77#a7 ( ! ,int]nal ,rev5ue ,code
 ( #aihf7 ( ! acc\nt hold] if ! acc\nt  
hold] is an eligible /ud5t 7z def9$ 9   
section #be;,a7b77#c7 ( su* ,code7 )    
respect to su* exp5ses4  7,c7 ,au?ority 
to provide high] age limit = c]ta9      
di/ributions ,! ,secret>y1 9            
consultation ) ! ,am]ican ,opportunity  
,fund ,advisory ,bo>d1 may by           
regulations provide = a high] age       
limitation ) respects to di/ributions   
relat+ to c]ta9 categories ( qualifi$   
exp5ses if ! ,secret>y det]m9es t su*   
high] age limitation is appropriate4    
7#b7 ,use-relat$ re/rictions  7,a7 ,9   

g5]al ,no am\nt may be di/ribut$ f an   
,,ao acc\nt unless ! acc\nt hold]       
e/abli%es1 "u rules e/abli%$ by !       
,executive ,director 9 consultation ) ! 
,am]ican ,opportunity ,fund ,advisory   
,bo>d1 t su* am\nt %all be us$ = a      
qualifi$ exp5se4  7,b7 ,qualifi$ exp5se 
,= purposes ( ?is subsection-- 7i7 ,9   
g5]al ,! t]m qualifi$ exp5se means      
exp5ses = any ( ! foll[+3  7,i7         
,education ( ! acc\nt hold]4  7,,ii7    
,own]%ip ( a home by ! acc\nt hold]4    
7,,iii7 ,any exp5ses paid or incurr$ on 
or aft] ! date on :i* ! acc\nt hold]    
atta9s age #ei4  7,,iv7 ,any o!r        
inve/m5t 9 f9ancial assets or p]sonal   
capital t provides long-t]m ga9s to     
wages & weal?1 z e/abli%$ "u regulations
 promulgat$ by ! ,secret>y1 9           
consultation ) ! ,executive ,director & 
! ,am]ican ,opportunity ,fund ,advisory 
,bo>d4  7ii7 ,exception ,su* t]m %all n 
include any exp5se describ$ 9 clause 7i7
 :i* is paid to a p]son :o does n meet  
su* /&>ds z are prescrib$ by !          

,secret>y1 9 consultation ) ! ,executive
 ,director & ! ,am]ican ,opportunity    
,fund ,advisory ,bo>d4  7#c7 ,am]ican   
,opportunity ,acc\nt ,advisory ,bo>d ,= 
purposes ( ?is subsection1 ! t]m        
,am]ican ,opportunity ,fund ,advisory   
,bo>d means an advisory bo>d e/abli%$ by
 ! ,secret>y consi/+ ( individuals )    
exp]tise 9 sav+s & asset-build+1 home   
f9anc+1 education f9anc+1 consum]       
f9ancial protection1 & su* o!r areas z !
 ,secret>y may det]m9e appropriate4     
#ajd4 ,assignm5t1 ali5ation1 & treatm5t 
( deceas$ individuals  7a7 ,assignm5t & 
ali5ation ,"u regulations :i* %all be   
prescrib$ by ! ,executive ,director1    
rules relat+ to assignm5t & ali5ation   
applicable "u *apt] #hd ( title #e1     
,unit$ ,/ates ,code1 ) respect to am\nts
 held 9 acc\nts 9 ! ,?rift ,sav+s ,fund 
%all apply ) respect to am\nts held 9   
,,ao acc\nts 9 ! ,am]ican ,opportunity  
,fund4  7b7 ,treatm5t ( acc\nts (       
deceas$ individuals ,9 ! case ( a       
deceas$ acc\nt hold] ( an ,,ao acc\nt   

:i* has an acc\nt balance great] ?an    
z]o1 ^u receipt ( notification ( su*    
individual's dea?1 ! ,executive         
,director %all close ! acc\nt & %all    
transf] ! balance 9 su* acc\nt to ! ,,ao
 acc\nt ( su* acc\nt hold]'s surviv+    
sp\se or1 if !re is no su* acc\nt ( a   
surviv+ sp\se1 to ! duly appo9t$ legal  
repres5tative ( ! e/ate ( ! deceas$     
acc\nt hold]1 or if !re is no su*       
repres5tative1 to ! p]son or p]sons     
det]m9$ to be entitl$ !reto "u ! laws ( 
! domicile ( ! deceas$ acc\nt hold]4    
#aje4 ,rules gov]n+ ,,ao acc\nts relat+ 
to inve/m5t1 acc\nt+1 & report+  7a7    
,inve/m5t program ,! ,secret>y %all     
e/abli%1 & ! ,am]ican ,opportunity ,fund
 ,bo>d %all inve/ 9 debt obligations ( !
 ,unit$ ,/ates ,gov]nm5t ) a t]m ( #cj  
ye>s4  7b7 ,indep5d5t public acc\ntant  
7#a7 ,9 g5]al ,"u regulations :i* %all  
be prescrib$ by ! ,executive ,director1 
& subject to ! provisions ( ?is title1  
section #hdci7;b7 ( title #e1 ,unit$    
,/ates ,code 7relat+ to engagem5t (     

indep5d5t qualifi$ public acc\ntant71   
%all apply ) respect to ! ,am]ican      
,opportunity ,fund & acc\nts ma9ta9$ 9  
su* ,fund 9 ! same mann] & to ! same    
ext5t z su* section relates to ! ,?rift 
,sav+s ,fund & ! acc\nts ma9ta9$ 9 !    
,?rift ,sav+s ,fund4  7#b7 ,application 
rules ,= purposes ( p>agraph 7#a71      
ref]5ces 9 su* section #hdci7;b7 to an  
employee1 ,memb]1 =m] employee1 or =m]  
,memb] %all be deem$ ref]5ces to an     
acc\nt hold] ( an ,,ao acc\nt 9 !       
,am]ican ,opportunity ,fund4  7c7       
,confid5tiality & disclosure  7#a7 ,9   
g5]al ,except z o!rwise au?oriz$ by     
,f$]al law1 ! ,am]ican ,opportunity     
,fund ,bo>d1 ! ,executive ,director1 &  
any employee ( ! ,am]ican ,opportunity  
,fund ,bo>d %all n disclose in=mation ) 
respect to ! ,am]ican ,opportunity ,fund
 or any acc\nt ma9ta9$ 9 su* ,fund4     
7#b7 ,disclosure to designee ( b5efici>y
 ,! ,executive ,director may1 subject to
 su* requirem5ts & conditions z he may  
prescribe by regulations1 disclose su*  

in=mation ) respect to ! ,,ao acc\nt ( !
 b5efici>y to su* p]son or p]sons z !   
b5efici>y may designate 9 a reque/ = or 
cons5t to su* disclosure1 or to any o!r 
p]son at ! b5efici>y's reque/ to ! ext5t
 necess>y to comply ) a reque/ =        
in=mation or assi/ance made by !        
b5efici>y to su* o!r p]son4  #ajf4      
,am]ican ,opportunity ,fund ,bo>d  7a7  
,9 g5]al ,!re is e/abli%$ 9 ! executive 
bran* ( ! ,gov]nm5t an ,am]ican         
,opportunity ,fund ,bo>d4  7b7          
,composition1 duties1 & responsibilities
 ,subject to ! provisions ( ?is title1 !
 foll[+ provisions %all apply ) respect 
to ! ,am]ican ,opportunity ,fund ,bo>d 9
 ! same mann] & to ! same ext5t z su*   
provisions relate to ! ,f$]al ,retirem5t
 ,?rift ,inve/m5t ,bo>d3  7#a7 ,section 
#hdgb ( title #e1 ,unit$ ,/ates ,code   
7relat+ to composition ( ,f$]al         
,retirem5t ,?rift ,inve/m5t ,bo>d74     
7#b7 ,section #hdgd ( su* title 7relat+ 
to ,executive ,director74  7#c7 ,section
 #hdgf ( su* title 7relat+ to           

adm9i/rative provisions74  #ajg4        
,fiduci>y responsibilities  7a7 ,9 g5]al
 ,"u regulations ( ! ,secret>y ( ,labor1
 ! provisions ( sections #hdgg & #hdgh (
 title #e1 ,unit$ ,/ates ,code1 %all    
apply 9 connection ) ! ,am]ican         
,opportunity ,fund & ! acc\nts ma9ta9$ 9
 su* ,fund 9 ! same mann] & to ! same   
ext5t z su* provisions apply 9          
connection ) ! ,?rift ,sav+s ,fund & !  
acc\nts ma9ta9$ 9 ! ,?rift ,sav+s ,fund4
  7b7 ,inve/igative au?ority ,any       
au?ority available to ! ,secret>y (     
,labor "u section #ejd ( ! ,employee    
,retirem5t ,income ,security ,act (     
#aigd 7#bi ,u4,s4,c4 #aacd7 is h]eby    
made available to ! ,secret>y ( ,labor1 
& any (fic] designat$ by ! ,secret>y (  
,labor1 to det]m9e :e!r any p]son has   
violat$1 or is ab\t to violate1 any     
provision applicable "u subsection 7a74 
7c7 ,exculpatory provisions2 insurance  
7#a7 ,9 g5]al ,any provision 9 an       
agreem5t or in/rum5t :i* purports to    
relieve a fiduci>y f responsibility or  

liability = any responsibility1         
obligation1 or duty "u ?is title %all be
 void4  7#b7 ,insurance ,am\nts 9 !     
,am]ican ,opportunity ,fund available = 
adm9i/rative exp5ses %all be available &
 may be us$ at ! discretion ( !         
,executive ,director to pur*ase         
insurance to cov] pot5tial liability (  
p]sons :o s]ve 9 a fiduci>y capacity )  
respect to ! ,fund & acc\nts ma9ta9$    
!re91 )\t reg>d to :e!r a policy (      
insurance p]mits rec\rse by ! insur]    
aga9/ ! fiduci>y 9 ! case ( a brea* ( a 
fiduci>y obligation4  #ajh4 ,acc\nts    
disreg>d$ 9 det]m9+ eligibility = ,f$]al
 b5efits ,am\nts 9 any ,,ao acc\nt %all 
n be tak5 into acc\nt 9 det]m9+ any     
individual's or h\sehold's f9ancial     
eligibility =1 or am\nt (1 any b5efit or
 s]vice1 paid = 9 :ole or 9 "p ) ,f$]al 
funds1 includ+ /ud5t f9ancial aid4      
#aji4 ,reports  7a7 ,reports to         
,congress ,! ,executive ,director1 9    
consultation ) ! ,secret>y1 %all        
annually transmit a writt5 report to !  

,congress4 ,su* report %all include--   
7#a7 a detail$ description ( ! /atus &  
op]ation ( ! ,am]ican ,opportunity ,fund
 & ! managem5t ( ! ,,ao acc\nts2 &  7#b7
 a detail$ acc\nt+ ( ! adm9i/rative     
exp5ses 9 c>ry+ out ?is title1 includ+ !
 ratio ( su* adm9i/rative exp5ses to !  
balance ( ! ,am]ican ,opportunity ,fund 
& ! me?odology adopt$ by ! ,executive   
,director = allocat+ su* exp5ses among !
 ,,ao acc\nts4  7b7 ,reports to acc\nt  
hold]s ,! ,am]ican ,opportunity ,fund   
,bo>d %all prescribe regulations "u :i* 
ea* individual = :om an ,,ao acc\nt is  
ma9ta9$ %all be furni%$ ) an annual     
/atem5t relat+ to ! individual's acc\nt1
 :i* %all include--  7#a7 a /atem5t ( ! 
balance ( individual's ,,ao acc\nt2     
7#b7 a projection ( ! acc\nt's gr[? by !
 "t ! individual atta9s ! age ( #ah2 &  
7#c7 su* o!r in=mation z ! ,secret>y    
deems relevant4  #aaj4 ,programs =      
promot+ f9ancial capability ,! ,secret>y
 ( ! ,treasury1 9 coord9ation ) !       
,f9ancial ,lit]acy & ,education         

,commission1 %all develop programs to   
promote ! f9ancial capability ( acc\nt  
hold]s ( ,,ao acc\nts4  #aaa4 ,tax      
treatm5t  7a7 ,contributions &          
di/ributions ,"p ,,iii ( sub*apt] ,b (  
*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by ins]t+ aft] section   
#aci;,g ! foll[+ new section3  #aci;,h4 
,contributions to & di/ributions f ,,ao 
acc\nts ,gross income %all n include--  
7#a7 any contribution cr$it$ to ! ,,ao  
acc\nt ( ! taxpay] "u section           
#ajc7;a77#c7 ( ! ,am]ican ,opportunity  
,acc\nts ,act1 &  7#b7 any di/ribution f
 su* an ,,ao acc\nt4  4  7b7 ,tax       
treatm5t ( e>n+s & di/ributions         
,sub*apt] ,f ( *apt] #a ( ! ,int]nal    
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new "p3  ,,ix ,am]ican
 ,opportunity ,fund & ,,ao acc\nts      
,sec4 #ecj;,a4 ,am]ican ,opportunity    
,fund & ,,ao acc\nts4  #ecj;,a4 ,am]ican
 ,opportunity ,fund & ,,ao acc\nts  7a7 
,g5]al rule ,! ,am]ican ,opportunity    
,fund & ,,ao acc\nts %all be exempt f   

taxation "u ?is subtitle4 ,not)/&+ !    
prec$+ s5t5ce1 a ,,ao acc\nt %all be    
subject to ! taxes impos$ by section    
#eaa 7relat+ to imposition ( tax on     
unrelat$ bus9ess income ( *>itable      
organizations74  7b7 ,def9itions ,=     
purposes ( ?is section1 ! t]ms ,am]ican 
,opportunity ,fund & ,,ao acc\nt h !    
mean+s giv5 su* t]ms "u title ,i ( !    
,am]ican ,opportunity ,acc\nts ,act4  4 
7c7 ,con=m+ am5dm5ts  7#a7 ,! table (   
sections = "p ,,iii ( sub*apt] ,b (     
*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by ins]t+ aft] ! item    
relat$ to section #aci;,g ! foll[+ new  
item3  ,sec4 #aci;,h4 ,contributions to 
& di/ributions f ,,ao acc\nts4  4  7#b7 
,! table ( p>ts = sub*apt] ,f ( *apt] #a
 ( su* ,code is am5d$ by add+ at ! end !
 foll[+ new item3  ,"p ,,ix--,am]ican   
,opportunity ,fund & ,,ao acc\nts  4    
7d7 ,effective date ,! am5dm5ts made by 
?is section %all apply to taxable ye>s  
beg9n+ aft] ,decemb] #ca1 #bjai4  ,,ii  
,rev5ue provisions  ,a ,e/ate & gift tax

 provisions  #bja4 ,modification ( e/ate
 tax rate & basic exclusion am\nt  7a7  
,p]man5t ext5sion ( maximum e/ate tax   
rate & basic exclusion am\nt z 9 effect 
9 #bjji  7#a7 ,maximum e/ate tax rate ,!
 la/ r[ ( ! table conta9$ 9 subsection  
7c7 ( section #bjja ( ! ,int]nal ,rev5ue
 ,code ( #aihf is am5d$ by /rik+ #dj    
p]c5t & ins]t+ #de p]c5t4  7#b7 ,basic  
exclusion am\nt ,p>agraph 7#c7 ( section
 #bjaj7;c7 ( ! ,int]nal ,rev5ue ,code ( 
#aihf is am5d$ to read z foll[s3  7#c7  
,basic exclusion am\nt ,= purposes ( ?is
 subsection1 ! basic exclusion am\nt is 
#c1ejj1jjj4  4  7b7 ,additional taxes = 
e/ates ov] #aj1jjj1jjj ,! table conta9$ 
9 section #bjja7;c71 z am5d$ by         
subsection 7a71 is am5d$--  7#a7 by     
ins]t+ b n ov] #aj1jjj1jjj aft] ,ov]    
#a1jjj1jjj 9 ! la/ r[2 &  7#b7 by add+  
at ! end ! foll[+3  ,ov] #aj1jjj1jjj b n
 ov] #ej1jjj1jjjd1cie1hjj1 plus #ee     
p]c5t ( ! excess ( su* am\nt ov]        
#aj1jjj1jjj4 ,ov] #ej1jjj1jjjbf1cie1hjj1
 plus #fe p]c5t ( ! excess ( su* am\nt  

ov] #ej1jjj1jjj4 4  7c7 ,effective date 
,! am5dm5ts made by ?is section %all    
apply to e/ates ( dec$5ts dy+ & gifts   
made aft] ,decemb] #ca1 #bjai4  #bjb4   
,requir$ m9imum #aj-ye> t]m1 etc41 =    
grantor reta9$ annuity tru/s  7a7 ,9    
g5]al ,subsection 7b7 ( section #bgjb is
 am5d$-- 7#a7 by r$esignat+ p>agraphs   
7#a71 7#b71 & 7#c7 z subp>agraphs 7,a71 
7,b71 & 7,c71 respectively1 & by mov+   
su* subp>agraphs 7z s r$esignat$7 #b ems
 to ! "r2  7#b7 by /rik+ ,= purposes ( &
 ins]t+ ! foll[+3  7#a7 ,9 g5]al ,=     
purposes (  2  7#c7 by /rik+ p>agraph   
7#a7 or 7#b7 9 p>agraph 7#a77;,c7 7z s  
r$esignat$7 & ins]t+ subp>agraph 7,a7 or
 7,b72 &  7#d7 by add+ at ! end ! foll[+
 new p>agraph3  7#b7 ,additional        
requirem5ts ) respect to grantor reta9$ 
annuities ,= purposes ( subsection 7a71 
9 ! case ( an int]e/ describ$ 9 p>agraph
 7#a77;,a7 7det]m9$ )\t reg>d to ?is    
p>agraph7 :i* is reta9$ by ! transf]or1 
su* int]e/ %all be treat$ z describ$ 9  
su* p>agraph only if--  7,a7 ! "r to    

receive ! fix$ am\nts ref]r$ to 9 su*   
p>agraph is = a t]m ( n less ?an #aj    
ye>s & n m ?an ! life expectancy ( !    
annuitant plus #aj ye>s1  7,b7 su* fix$ 
am\nts1 :5 det]m9$ on an annual basis1 d
 n decrease dur+ ! t]m describ$ 9       
subp>agraph 7,a71 &  7,c7 ! rema9d]     
int]e/ has a value1 z det]m9$ z ( ! "t (
 ! transf]1 :i* is-- 7i7 n less ?an an  
am\nt equal to ! great] (--  7,i7 #be   
p]c5t ( ! fair m>ket value ( ! prop]ty 9
 ! tru/1 or  7,,ii7 #ejj1jjj1 &  7ii7 n 
great] ?an ! fair m>ket value ( !       
prop]ty 9 ! tru/4  4  7b7 ,effective    
date ,! am5dm5ts made by ?is section    
%all apply to transf]s made aft] ! date 
( ! enactm5t ( ?is ,act4  #bjc4 ,c]ta9  
transf] tax rules applicable to grantor 
tru/s  7a7 ,9 g5]al ,subtitle ,b is     
am5d$ by add+ at ! end ! foll[+ new     
*apt]3  #af ,special rules = grantor    
tru/s  ,sec4 #bija4 ,application (      
transf] taxes4  #bija4 ,application (   
transf] taxes  7a7 ,9 g5]al ,9 ! case ( 
any portion ( a tru/ to :i* ?is section 

applies--  7#a7 ! value ( ! gross e/ate 
( ! deceas$ deem$ own] ( su* portion    
%all include all assets attributable to 
t portion at ! "t ( ! dea? ( su* own]1  
7#b7 any di/ribution f su* portion to "o
 or m b5efici>ies dur+ ! life ( ! deem$ 
own] ( su* portion %all be treat$ z a   
transf] by gift = purposes ( *apt] #ab1 
&  7#c7 if at any "t dur+ ! life ( !    
deem$ own] ( su* portion1 su* own]      
ceases to be treat$ z ! own] ( su*      
portion "u subp>t ,e ( "p #a ( sub*apt] 
,j ( *apt] #a1 all assets attributable  
to su* portion at su* "t %all be treat$ 
= purposes ( *apt] #ab z a transf] by   
gift made by ! deem$ own]4  7b7 ,portion
 ( tru/ to :i* section applies ,?is     
section %all apply to-- 7#a7 ! portion (
 a tru/ ) respect to :i* ! grantor is ! 
deem$ own]1 &  7#b7 ! portion ( ! tru/  
to :i* a p]son :o is n ! grantor is a   
deem$ own] by reason ( ! rules ( subp>t 
,e ( "p #a ( sub*apt] ,j ( *apt] #a1 &  
su* deem$ own] engages 9 a sale1        
ex*ange1 or comp>able transaction ) !   

tru/ t is disreg>d$ = purposes (        
subtitle ,a4  ,= purposes ( p>agraph    
7#b71 ! portion ( ! tru/ describ$ )     
respect to a transaction is ! portion ( 
! tru/ attributable to ! prop]ty receiv$
 by ! tru/ 9 su* transaction1 includ+   
all reta9$ income !refrom1 appreciation 
!reon1 & re9ve/m5ts !re(1 net ( ! am\nt 
( consid]ation receiv$ by ! deem$ own] 9
 su* transaction4  7c7 ,exceptions ,?is 
section %all n apply to-- 7#a7 any tru/ 
t is includible 9 ! gross e/ate ( !     
deem$ own] 7)\t reg>d to subsection     
7a77#a771 &  7#b7 any o!r type ( tru/ t 
! ,secret>y det]m9es by regulations or  
o!r guidance does n h z a significant   
purpose ! avoidance ( transf] taxes4    
7d7 ,deem$ own] def9$ ,= purposes ( ?is 
section1 ! t]m deem$ own] means any     
p]son :o is treat$ z ! own] ( a portion 
( a tru/ "u subp>t ,e ( "p #a ( sub*apt]
 ,j ( *apt] #a4  7e7 ,r$uction = taxable
 gifts to tru/ made by own] ,! am\nt to 
:i* subsection 7a7 applies %all be r$uc$
 by ! value ( any transf] by gift by !  

deem$ own] to ! tru/ previ\sly tak5 into
 acc\nt by ! deem$ own] "u *apt] #ab4   
7f7 ,liability = paym5t ( tax ,any tax  
impos$ pursuant to subsection 7a7 %all  
be a liability ( ! tru/4  4  7b7        
,cl]ical am5dm5t ,! table ( *apt]s =    
subtitle ,b is am5d$ by add+ at ! end ! 
foll[+ new item3  ,*apt] #af4 ,special  
rules = grantor tru/s  4  7c7 ,effective
 date ,! am5dm5ts made by ?is section   
%all apply-- 7#a7 to tru/s creat$ on or 
aft] ! date ( ! enactm5t ( ?is ,act2    
7#b7 to any portion ( a tru/ e/abli%$   
be=e ! date ( ! enactm5t ( ?is ,act :i* 
is attributable to a contribution made  
on or aft] su* date2 &  7#c7 to any     
portion ( a tru/ e/abli%$ be=e ! date ( 
! enactm5t ( ?is ,act to :i* section    
#bija7;a7 ( ! ,int]nal ,rev5ue ,code (  
#aihf 7z add$ by subsection 7a77 applies
 by reason ( a transaction describ$ 9   
section #bija7;b77#b7 ( su* ,code on or 
aft] su* date4  #bjd4 ,simplify+ gift   
tax exclusion = annual gifts  7a7 ,9    
g5]al ,section #bejc ( ! ,int]nal       

,rev5ue ,code ( #aihf is am5d$-- 7#a7 by
 /rik+ p>agraph 7#a7 ( subsection 7b7 & 
ins]t+ ! foll[+3  7#a7 ,9 g5]al  7,a7   
,limit p] donee ,9 ! case ( gifts made  
to any p]son by ! donor dur+ ! cal5d>   
ye>1 ! fir/ #aj1jjj ( su* gifts to su*  
p]son %all n1 = purposes ( subsection   
7a71 be includ$ 9 ! total am\nt ( gifts 
made dur+ su* ye>4  7,b7 ,cumulative    
limit p] donor  7i7 ,9 g5]al ,!         
aggregate am\nt exclud$ "u subp>agraph  
7,a7 ) respect to all transf]s describ$ 
9 clause 7ii7 made by ! donor dur+ !    
cal5d> ye> %all n exce$ #ej1jjj4  7ii7  
,transf]s subject to limitation ,!      
transf]s describ$ 9 ?is clause are--    
7,i7 a transf] 9 tru/ 7) ! exception (  
any transf] to a tru/ describ$ 9 section
 #bfdb7;c77#b771  7,,ii7 a transf] ( an 
int]e/ 9 a pas/hr\gh entity1  7,,iii7 a 
transf] ( an int]e/ subject to a        
prohibition on sale1 &  7,,iv7 any o!r  
transf] ( prop]ty t1 )\t reg>d to       
)drawal1 put1 or o!r su* rights 9 !     
donee1 _c imm$iately be liquidat$ by !  

donee4  1 &  7#b7 by /rik+ subsection   
7c74  7b7 ,con=m+ am5dm5ts  7#a7        
,subp>agraph 7,b7 ( section #ebi7;c77#b7
 ( ! ,int]nal ,rev5ue ,code ( #aihf is  
am5d$ by /rik+ section #bejc7;b7 &      
ins]t+ 8section #bejc7;b77#a77;,a74     
7#b7 ,clause 7i7 ( section              
#ebi;,a7b77#b77;,b7 ( su* ,code is am5d$
 by /rik+ section #bejc7;b7 & ins]t+    
section #bejc7;b77#a77;,a74  7#c7       
,p>agraph 7#b7 ( section #bebc7;i7 ( su*
 ,code is am5d$ by /rik+ section        
#bejc7;b7 & ins]t+ section              
#bejc7;b77#a77;,a74  7#d7 ,subsection   
7c7 ( su* ,code ( section #bhja is am5d$
 by /rik+ #bejc7;b7 & ins]t+            
#bejc7;b77#a77;,a74  7c7 ,regulations ,!
 ,secret>y ( ! ,treasury1 or ! ,secret>y
 ( ! ,treasury's delegate1 may prescribe
 su* regulations or o!r guidance z may  
be necess>y or appropriate to c>ry out !
 am5dm5ts made by ?is section4  7d7     
,effective date ,! am5dm5ts made by ?is 
section %all apply to any cal5d> ye>    
beg9n+ aft] ! date ( ! enactm5t ( ?is   

,act4  #bje4 ,modification ( rules =    
value ( c]ta9 f>m real prop]ty  7a7     
,increase 9 limitation  7#a7 ,9 g5]al   
,p>agraph 7#b7 ( section #bjcb;,a7a7 ( !
 ,int]nal ,rev5ue ,code ( #aihf is am5d$
 by /rik+ #gej1jjj & ins]t+ #c1jjj1jjj4 
7#b7 ,inflation adju/m5t ,p>agraph 7#c7 
( section #bjcb;,a7a7 ( su* ,code is    
am5d$--  7,a7 by /rik+ #aiih & ins]t+   
#bjbj2  7,b7 by /rik+ #gej1jjj & ins]t+ 
#c1jjj1jjj 9 subp>agraph 7,a72 &  7,c7  
by /rik+ cal5d> ye> #aiig & ins]t+      
cal5d> ye> #bjai 9 subp>agraph 7,b74    
7b7 ,qualifi$ use limit$ to f>m+        
purposes  7#a7 ,9 g5]al ,section        
#bjcb;,a7b77#b7 is am5d$ by /rik+ !     
devotion ( ! prop]ty & all t foll[s &   
ins]t+ ! devotion ( ! prop]ty to use z a
 f>m = f>m+ purposes44  7#b7 ,con=m+    
am5dm5ts  7,a7 ,subsections             
7c77#f77;,a71 7h77#c71 & 7i77#c7 (      
section #bjcb;,a ( ! su* ,code are ea*  
am5d$ by /rik+ subp>agraph 7,a7 or 7,b7 
(4  7,b7 ,! head+ ( section #bjcb;,a (  
su* ,code 7& ! item relat+ to section   

#bjcb;,a 9 ! table ( sections = "p ,,iii
 ( sub*apt] ,a ( *apt] #aa ( su* ,code7 
is am5d$ by /rik+ 1 etc414  7c7         
,effective date ,! am5dm5ts made by ?is 
section %all apply to e/ates ( dec$5ts  
dy+1 & gifts made1 aft] ,decemb] #ca1   
#bjai4  ,b ,re=m ( taxation ( capital   
income  #baa4 ,increase 9 capital ga9s  
rate  7a7 ,9 g5]al ,section             
#a7;h77#a77;,d7 ( ! ,int]nal ,rev5ue    
,code ( #aihf is am5d$ by /rik+ #bj     
p]c5t & ins]t+ #bd4b p]c5t4  7b7 ,m9imum
 tax ,section #ee7;b77#c77;,d7 ( !      
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by /rik+ #bj p]c5t & ins]t+ #bd4b p]c5t4
  7c7 ,con=m+ am5dm5ts ,! foll[+        
provisions are ea* am5d$ by /rik+ #bj   
p]c5t & ins]t+ #bj4d p]c5t3 7#a7        
,section #eca ( ! ,int]nal ,rev5ue ,code
 ( #aihf4  7#b7 ,section #eda ( !       
,int]nal ,rev5ue ,code ( #aihf4  7#c7   
,section #adde7;e77#a7 ( ! ,int]nal     
,rev5ue ,code ( #aihf4  7#d7 ,section   
#adde7;e77#f7 ( ! ,int]nal ,rev5ue ,code
 ( #aihf4  7#e7 ,! second s5t5ce (      

section #geah7;g77#f77;,a7 ( ! ,int]nal 
,rev5ue ,code ( #aihf4  7#f7 ,section   
#eceaa7;f77#b7 ( title #df1 ,unit$      
,/ates ,code4  7d7 ,effective dates     
7#a7 ,9 g5]al ,except z o!rwise provid$1
 ! am5dm5ts made by ?is section %all    
apply to taxable ye>s beg9n+ aft]       
,decemb] #ca1 #bjai4  7#b7 ,)hold+ ,!   
am5dm5ts made by p>agraphs 7#c7 & 7#d7 (
 subsection 7c7 %all apply to am\nts    
paid on or aft] ,janu>y #a1 #bjai4      
#bab4 ,deem$ realization ( capital ga9s 
at "t ( gift or dea?  7a7 ,treatm5t z   
sale  7#a7 ,9 g5]al ,"p ,,iv ( sub*apt] 
,p ( *apt] #a ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ by add+ at ! end !    
foll[+ new section3  #abfa4 ,ga9s f     
c]ta9 prop]ty transf]r$ by gift or ^u   
dea?  7a7 ,9 g5]al ,any capital asset   
:i* is transf]r$ by gift or ^u dea? %all
 be treat$ z sold = its fair m>ket value
 on ! date ( su* gift1 dea?1 or transf]4
  7b7 ,exceptions  7#a7 ,tangible       
prop]ty ,?is section %all n apply to any
 tangible p]sonal prop]ty o!r ?an a     

collectible 7z def9$ 9 section #djh7m7  
)\t reg>d to p>agraph 7#c7 !re(74  7#b7 
,sp\sal exception ,?is section %all n   
apply to any transf] if su* transf] is  
made to ! sp\se or surviv+ sp\se ( !    
transf]or4  7#c7 ,gifts to *>ity ,?is   
section %all n apply to any transf] if  
su* transf] is made to an organization  
describ$ 9 section #agj7;c74  4  7#b7   
,cl]ical am5dm5t ,! table ( sections =  
"p ,,iv ( sub*apt] ,p ( *apt] #a ( su*  
,code is am5d$ by add+ at ! end ! foll[+
 new item3  ,sec4 #abfa4 ,ga9s f c]ta9  
prop]ty transf]r$ by gift or ^u dea?4  4
  7b7 ,treatm5t ( basis = gifts &       
beque/s to :i* tax applies  7#a7        
,elim9ation ( c>ryov] basis = gifts     
,subsection 7a7 section #ajae ( !       
,int]nal ,rev5ue ,code ( #aihf is       
am5d$-- 7,a7 by /rik+ ,if ! prop]ty &   
ins]t+ ! foll[+3  7#a7 ,gifts be=e      
,janu>y #a1 #bjbj ,if ! prop]ty  2  7,b7
 by ins]t+ & be=e ,janu>y #a1 #bjbj aft]
 aft] ,decemb] #ca1 #aibj2 &  7,c7 by   
add+ at ! end ! foll[+ new p>agraph3    

7#b7 ,gifts aft] ,decemb] #ca1 #bjai    
7,a7 ,9 g5]al ,if ! prop]ty 0 acquir$ by
 gift aft] ,decemb] #ca1 #bjai1 ! basis 
%all be ! fair m>ket value ( su* prop]ty
 at ! "t ( ! gift4  7,b7 ,special rules 
= *>itable organizations ,9 ! case ( any
 prop]ty acquir$ by an organization     
describ$ 9 section #agj7;c7 by gift1    
subp>agraph 7,a7 %all n apply & p>agraph
 7#a7 %all be appli$ )\t reg>d to !     
phrase & be=e ,janu>y #a1 #bjbj4  4     
7#b7 ,prop]ty acquir$ f dec$5t sp\ses   
,section #ajad ( su* ,code is am5d$ by  
add+ at ! end ! foll[+ new subsection3  
7g7 ,prop]ty acquir$ f dec$5t sp\ses ,9 
! case ( any prop]ty acquir$ f or :i*   
has pass$ f a dec$5t 9 a transf]        
describ$ 9 section #ajda7;a77#a71 !     
basis ( su* prop]ty 9 ! h&s ( !         
transf]ee %all be det]m9$ "u section    
#ajda7;b7 & n ?is section4  4  7#c7     
,rule = transf]s betwe5 sp\ses  7,a7 ,9 
g5]al ,section #ajda7;b7 ( ! ,int]nal   
,rev5ue ,code ( #aihf is am5d$ to read z
 foll[s3  7b7 ,transf]ee has transf]or's

 basis ,9 ! case ( any transf] ( prop]ty
 describ$ 9 subsection 7a71 ! basis ( ! 
transf]ee 9 ! prop]ty %all be ! adju/$  
basis ( ! transf]or4  4  7,b7 ,con=m+   
am5dm5t ,section #ajae7;e7 ( su* ,code  
is am5d$ by /rik+ #ajda7;b77#b7 & ins]t+
 #ajda7;b74  #bac4 ,exclusion ( c]ta9   
am\nts ( realiz$ capital ga9  7a7 ,9    
g5]al ,"p ,,iii ( sub*apt] ,b ( *apt] #a
 ( ! ,int]nal ,rev5ue ,code ( #aihf1 z  
am5d$ by section #aaa1 is am5d$ by      
ins]t+ aft] section #aci;,h ! foll[+ new
 section3  #aci;,i4 ,exclusion ga9 f    
transf]s ( appreciat$ assets by gift or 
at dea?  7a7 ,9 g5]al ,gross income %all
 n include s mu* ( ! aggregate ga9 f    
transf]s at dea? describ$ 9 #abfa7;a7 ( 
any capital asset z does n exce$        
#ajj1jjj4  7b7 ,special rules = real    
prop]ty us$ = f>m+  7#a7 ,9 g5]al  7,a7 
,application ( section ,9 ! case (      
qualifi$ real prop]ty-- 7i7 subsection  
7a7 %all be appli$ sep>ately to su*     
qualifi$ real prop]ty & o!r prop]ty1 &  
7ii7 9 apply+ subsection 7a7 to su*     

qualifi$ real prop]ty1 ! applicable     
am\nt %all be sub/itut$ = #ajj1jjj4     
7,b7 ,applicable am\nt ,= purposes (    
subp>agraph 7,a71 ! applicable am\nt is 
an am\nt equal to ! sum (--  7i7        
#a1jjj1jjj1 plus  7ii7 ! excess 7n less 
?an z]o7 ( ! am\nt 9 effect "u          
subsection 7a7 ov] ! aggregate am\nt (  
ga9 f transf]s at dea? describ$ 9       
section #abfa7;a7 ( capital assets o!r  
?an qualifi$ real prop]ty4  7#b7        
,imposition ( additional tax  7,a7 ,9   
g5]al ,! ,secret>y %all1 by regulations1
 provide = recaptur+ ! b5efit "u any    
exclusion all[able "u p>agraph 7#a7 )   
respect to any qualifi$ real prop]ty if1
 )9 #aj ye>s aft] ! dec$5t's dea? & be=e
 ! dea? ( ! qualifi$ heir--  7i7 !      
qualifi$ heir disposes ( any int]e/ 9   
qualifi$ real prop]ty 7o!r ?an by a     
disposition to a memb] ( 8 family71 or  
7ii7 ! qualifi$ heir ceases to use = !  
qualifi$ use ! qualifi$ real prop]ty :i*
 0 acquir$ 7or pass$7 f ! dec$5t4  7,b7 
,liability ,! b5efit recaptur$ "u       

subp>agraph 7,a7 %all be recaptur$ f !  
qualifi$ heir4  7#c7 ,def9itions ,any   
t]m us$ 9 ?is subsection :i* is also us$
 9 section #bjcb;,a %all h ! mean+ giv5 
su* t]m "u section #bjcb;,a4  7c7       
,inflation adju/m5t  7#a7 ,9 g5]al ,9 ! 
case ( any taxable ye> beg9n+ aft]      
#bjbj1 ! #ajj1jjj am\nt 9 subsection 7a7
 & ! #a1jjj1jjj 9 subsection            
7b77#a77;,b77i7 %all ea* be increas$ by 
an am\nt equal to--  7,a7 su* doll>     
am\nt1 multipli$ by  7,b7 ! co/-(-liv+  
adju/m5t det]m9$ "u section #a7;f77#c7 =
 ! cal5d> ye> 9 :i* ! taxable ye> beg9s1
 det]m9$ by sub/itut+ 9 subp>agraph     
7,a77ii7 !re( cal5d> ye> #bjai = cal5d> 
ye> #bjaf4  7#b7 ,r\nd+  7,a7 ,9 g5]al  
,if ! doll> am\nt 9 subsection 7a71 aft]
 be+ increas$ "u p>agraph 7#a71 is n a  
multiple ( #aj1jjj1 su* doll> am\nt %all
 be r\nd$ to ! next l[e/ multiple (     
#aj1jjj4  7,b7 ,qualifi$ real prop]ty   
,if ! doll> am\nt 9 subsection          
7b77#a77;,b77i71 aft] be+ increas$ "u   
p>agraph 7#a71 is n a multiple (        

#ajj1jjj1 su* am\nt %all be r\nd$ to !  
next l[e/ multiple ( #ajj1jjj4  4  7b7  
,cl]ical am5dm5t ,! table ( sections =  
"p ,,iii ( sub*apt] ,b ( *apt] #a ( su* 
,code is am5d$ by ins]t+ aft] section   
#aci;,h ! foll[+ new item3  ,sec4       
#aci;,i4 ,exclusion ga9 f transf]s (    
appreciat$ assets by gift or at dea?4  4
  7c7 ,effective date ,! am5dm5ts made  
by ?is section %all apply to taxable    
ye>s beg9n+ aft] ,decemb] #ca1 #bjai4   
#bad4 ,ext5sion ( "t = paym5t ( tax  7a7
 ,ext5sion ( "t  7#a7 ,9 g5]al ,subp>t  
,b ( *apt] #fb ( ! ,int]nal ,rev5ue     
,code ( #aihf is am5d$ by add+ at ! end 
! foll[+ new section3  #fafh4 ,ext5sion 
( "t = paym5t ( capital ga9s on c]ta9   
assets realiz$ by reason ( dea?  7a7    
#ae-,ye> in/allm5t paym5t  7#a7 ,9 g5]al
 ,9 ! case ( any ga9 ) respect to an    
eligible capital asset t is recogniz$ "u
 section #abfa by reason ( ! dea? ( !   
taxpay]1 ! taxpay] may elect to pay "p  
or all ( tax impos$ on su* ga9 9 #b or m
 7b n exce$+ #ae7 equal in/allm5ts4     

7#b7 ,date = paym5t ( in/allm5ts ,if an 
election is made "u p>agraph 7#a71 !    
fir/ in/allm5t %all be paid n lat] ?an !
 date on :i* ! tax = ! taxable ye> 9 :i*
 ! ga9 describ$ 9 p>agraph 7#a7 occurs  
is due1 & ea* succe$+ in/allm5t %all be 
paid on or be=e ! date :i* is #a ye>    
aft] ! date prescrib$ by ?is p>agraph = 
paym5t ( ! prec$+ in/allm5t4  7b7       
,eligible capital asset ,= purposes (   
?is section1 ! t]m eligible capital     
asset means any capital asset o!r ?an   
p]sonal prop]ty ( a type :i* is actively
 trad$ 7)9 ! mean+ ( section            
#ajib7;d77#a774  7c7 ,portion ( tax     
eligible ,! am\nt ( tax to :i* ?is      
section applies %all n exce$ ! excess   
(-- 7#a7 ! tax comput$ "u *apt] #a      
7det]m9$ aft] application ( section     
#abfa71 ov]  7#b7 ! tax comput$ "u *apt]
 #a 7det]m9$ )\t reg>d to section       
#abfa74  7d7 ,election ,any election "u 
subsection 7a7 %all be made n lat] ?an !
 "t prescrib$ by section #fjgb = fil+ ! 
return ( tax impos$ "u *apt] #a 7includ+

 ext5sions !re(71 & %all be made 9 su*  
mann] z ! ,secret>y %all by regulations 
prescribe4 ,if an election "u subsection
 7a7 is made1 ! provisions ( ?is        
subtitle %all apply z ?\gh ! ,secret>y 7
 ext5d+ ! "t = paym5t ( ! tax4  7e7     
,proration ( defici5cy to in/allm5ts ,if
 an election is made "u subsection 7a7  
to pay any "p ( ! tax impos$ "u *apt] #a
 9 in/allm5ts & a defici5cy has be5     
assess$1 ! defici5cy %all 7subject to ! 
limitation provid$ by subsection        
7a77#b77 be prorat$ to ! in/allm5ts     
payable "u subsection 7a74 ,! "p ( !    
defici5cy s prorat$ to any in/allm5t !  
date = paym5t ( :i* has n arriv$ %all be
 collect$ at ! same "t z1 & z a "p (1   
su* in/allm5t4 ,! "p ( ! defici5cy s    
prorat$ to any in/allm5t ! date = paym5t
 ( :i* has arriv$ %all be paid ^u notice
 & dem& f ! ,secret>y4 ,?is subsection  
%all n apply if ! defici5cy is due to   
neglig5ce1 to int5tional disreg>d (     
rules & regulations1 or to fraud ) int5t
 to evade tax4  7f7 ,"t = paym5t (      

int]e/ ,if ! "t = paym5t ( any am\nt (  
tax has be5 ext5d$ "u ?is section1      
int]e/ payable "u section #ffja on any  
unpaid portion %all be paid annually at 
! same "t z1 & z "p (1 ea* in/allm5t    
paym5t ( ! tax4  7g7 ,regulations ,!    
,secret>y %all prescribe su* regulations
 z may be necess>y to ! application (   
?is section4  7h7 ,cross ,ref]5ces  7#a7
 ,security ,= au?ority ( ! ,secret>y to 
require security 9 ! case ( an ext5sion 
"u ?is section1 see section #fafe4  7#b7
 ,int]e/ ,= provisions relat+ to int]e/ 
on tax payable 9 in/allm5ts "u ?is      
section1 see subsection 7k7 ( section   
#ffja4  4  7#b7 ,cl]ical am5dm5t ,!     
table ( sections = subp>t ,b ( *apt] #fb
 is am5d$ by add+ at ! end ! foll[+ new 
item3  ,sec4 #fafh4 ,ext5sion ( "t =    
paym5t ( capital ga9s on c]ta9 assets   
realiz$ by reason ( dea?4  4  7b7       
,int]e/ ,section #ffja ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by       
r$esignat+ subsection 7k7 z subsection  
7l7 & by ins]t+ aft] subsection 7j7 !   

foll[+ new subsection3  7k7 ,special    
rate = tax ext5d$ "u section #fafh ,if !
 "t = paym5t ( an am\nt ( tax impos$ by 
*apt] #aa is ext5d$ z provid$ 9 section 
#fafh1 9 lieu ( ! annual rate provid$ by
 subsection 7a71 int]e/ %all be paid at 
a rate equal to #de p]c5t ( ! annual    
rate provid$ by subsection 7a74 ,=      
purposes ( ?is subsection1 ! am\nt ( any
 defici5cy :i* is prorat$ to in/allm5ts 
payable "u section #fafh %all be treat$ 
z an am\nt ( tax payable 9 in/allm5ts "u
 su* section4  4  #bae4 ,waiv] ( p5alty 
= und]paym5t ( e/imat$ tax ,section     
#ffed7;e77#c7 ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ by add+ at ! end !    
foll[+ new subp>agraph3  7,c7 ,capital  
ga9s payable ^u dea? ,no addition to tax
 %all be impos$ "u subsection 7a7 )     
respect to any und]paym5t if ! taxpay]  
di$ dur+ ! taxable ye> & ! ,secret>y    
det]m9es t ! am\nt ( ! und]paym5t is due
 to capital ga9s t 7 realiz$ by reason (
 section #abfa4  4  #baf4 ,effective    
date ,except z o!rwise provid$1 !       

am5dm5ts made by ?is subtitle %all apply
 to transf]s aft] ,decemb] #ca1 #bjai1 9
 taxable ye>s beg9n+ aft] su* date4