,i  #aaf? ,,congress  #a/ ,session  ,h4 
,r4 #dbgd  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,septemb] #aj1        
#bjai,mr4 ,got!im] 7= himself & ,mr4    
,zeld97 introduc$ ! foll[+ bill2 :i* 0  
ref]r$ to ! ,committee on ,ways & ,means
  ,a ,,bill  ,to am5d ! ,int]nal ,rev5ue
 ,code ( #aihf to repeal ! limitation on
 ! d$uction = c]ta9 taxes1 includ+ ,/ate
 & local prop]ty & income taxes1 to     
limit ! /ep-up 9 basis all[$ 9 ! case ( 
prop]ty acquir$ f a dec$5t1 & to deem a 
sale on any contribution ( prop]ty to a 
private f\ndation4  #a4 ,%ort title ,?is
 ,act may be cit$ z ! ,cutt+ ,local     
,taxes by ,re9/at+ ,,salt ,act4  #b4    
,repeal ( limitation on d$uction = ,/ate
 & local1 etc4 taxes  7a7 ,9 g5]al      
,section #afd7;b7 ( ! ,int]nal ,rev5ue  
,code ( #aihf is am5d$ by /rik+ p>agraph
 7#f7 7z add$ by ,public ,law #aae-ig7 &
 all t foll[s4  7b7 ,effective date ,!  
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjag4  #c4 ,/ep-up 9 basis (      

prop]ty acquir$ f dec$5t limit$ to      
#e1jjj1jjj  7a7 ,9 g5]al ,section       
#ajad7;a7 ( ! ,int]nal ,rev5ue ,code (  
#aihf is am5d$ to read z foll[s3  7a7 ,9
 g5]al ,except z o!rwise provid$ 9 ?is  
section1 ! basis ( prop]ty 9 ! h&s ( a  
p]son acquir+ ! prop]ty f a dec$5t or to
 :om ! prop]ty pass$ f a dec$5t %all1 if
 n sold1 ex*ang$1 or o!rwise dispos$ (  
be=e ! dec$5t's dea? by su* p]son1 be ! 
less] (--  7#a7 ! adju/$ basis ( !      
dec$5t1 or  7#b7 ! fair m>ket value ( ! 
prop]ty at ! date ( ! dec$5t's dea?4  4 
7b7 #e1jjj1jjj basis increase ,section  
#ajad ( su* ,code is am5d$ by add+ at ! 
end ! foll[+ new subsection3  7g7       
#e1jjj1jjj basis increase  7#a7 ,9 g5]al
 ,! basis ( a dec$5t's prop]ty to :i*   
subsection 7a7 applies %all be increas$ 
by an am\nt equal to a portion ( !      
aggregate basis increase1 :i* %all be   
allocat$ among/ prop]ty ( ! dec$5t 9    
proportion to ! net appreciation 9 value
 ( ! prop]ty4  7#b7 ,aggregate basis    
increase ,= purposes ( ?is subsection1 !

 aggregate basis increase %all be an    
am\nt equal to ! less] (--  7,a7        
#e1jjj1jjj1 or  7,b7 ! aggregate net    
appreciation 9 value ( all ! dec$5t's   
prop]ty to :i* subsection 7a7 applies4  
7#c7 ,net appreciation ,= purposes ( ?is
 subsection1 ! net appreciation 9 value 
( any prop]ty is ! am\nt by :i* 7if any7
 ! fair m>ket value ( ! prop]ty exce$s !
 dec$5t's adju/$ basis z ( ! date ( !   
dec$5t's dea?4  7#d7 ,special rules =   
c]ta9 prop]ty ,= purposes ( det]m9+ net 
appreciation 9 value ( prop]ty1 9 lieu (
 fair m>ket value1 ! foll[+ %all be us$3
  7,a7 ,9 ! case ( an election "u #bjcb1
 ! prop]ty value at ! applicable        
valuation date prescrib$ by su* section4
  7,b7 ,9 ! case ( an election "u       
section #bjcb;,a1 ! prop]ty value       
det]m9$ "u su* section4  7,c7 ,to !     
ext5t ( ! applicability ( ! exclusion   
describ$ 9 section #bjca7;c71 ! basis 9 
! h&s ( ! dec$5t4  4  7c7 ,con=m+       
am5dm5ts  7#a7 ,section #ajad7;d7 ( su* 
,code is am5d$ by /rik+ "u subsection   

7a71 su* basis 7det]m9$ be=e !          
application ( ?is subsection7 & ins]t+  
"u ?is section 7det]m9$ )\t reg>d to ?is
 subsection71 su* basis4  7#b7 ,section 
#ajad7;e7 ( su* ,code is am5d$ by ins]t+
 be=e ! p]iod at ! end ! foll[+3 &      
subsection 7g7 %all n apply to su*      
prop]ty4  7d7 ,effective date ,!        
am5dm5ts made by ?is section %all apply 
to ! e/ates ( dec$5ts dy+ aft] ,decemb] 
#ca1 #bjai4  #d4 ,tax treatm5t (        
contributions ( prop]ty to private      
f\ndation  7a7 ,9 g5]al ,"p ,,iv (      
sub*apt] ,p ( ! ,int]nal ,rev5ue ,code (
 #aihf is am5d$ by add+ at ! end !      
foll[+ new section3  #abfa4 ,treatm5t ( 
contributions ( prop]ty to private      
f\ndation  7a7 ,9 g5]al ,any prop]ty    
contribut$ by a taxpay] to a private    
f\ndation %all be treat$ = purposes (   
?is title z sold by ! taxpay] on ! date 
( su* contribution = its fair m>ket     
value4  7b7 ,det]m9ation & recognition (
 ga9 & loss ,9 ! case ( any sale = !    
taxable ye> "u subsection 7a7-- 7#a7 ?is

 sub*apt] %all be appli$ sep>ately )    
respect to all ga9s & losses f su*      
sales1  7#b7 losses %all be all[$ only  
to ! ext5t ( ga9s1 &  7#c7 ! tax impos$ 
by ?is *apt] = su* taxable ye> %all n be
 less ?an ! am\nt ( su* tax 7det]m9$ )\t
 reg>d to ?is section7 increas$ by an   
am\nt equal to ! increase 9 su* tax :i* 
w\ld result solely f ! inclusion ( any  
net ga9 f all su* sales4  7c7           
,coord9ation ) d$uction ,no d$uction    
%all be all[$ "u any o!r provision ( ?is
 *apt] by reason ( any contribution to  
:i* subsection 7a7 applies4  4  7b7     
,cl]ical am5dm5t ,! table ( sections =  
sub*apt] ,p ( su* ,code is am5d$ by add+
 at ! end ! foll[+ new item3  ,sec4     
#abfa4 ,treatm5t ( contributions (      
prop]ty to private f\ndation4  4  7c7   
,effective date ,! am5dm5ts made by ?is 
section %all apply to contributions (   
prop]ty 9 taxable ye>s beg9n+ aft]      
,decemb] #ca1 #bjai4