PUBLIC LAW 94^55—OCT. 4, 1976
90 STAT. 1715
" (3) CERTAIN SET-AsroEs DESCRIBED I N SECTION 4942(g)(2). — I n
the case of a deficiency attributable to the failure of an amount set aside by a private foundation for a specific project to be treated as a qualifying distribution under the provisions of section 4942(g)(2)(B)(i) ( II), such deficiency may be assessed at any time before the expiration of 2 years after the expiration of the period within which a deficiency may be assessed for the taxable year to which the amount set aside relates." (c) EFFECTIVE D A T E. — The amendments made by this section shall 26 USC 4942 ^PPly to taxable years beginning after December 31, 1974. note. SEC. 1303. MINIMUM DISTRIBUTION AMOUNT FOR PRIVATE FOUNDATIONS. (a) IN GENERAL.—Subsection (e) of section 4942 (relating to mini- 26 USC 4942. mum investment r e t u r n) is amended to read as follows: " (e) MINIMUM INVESTMENT R E T U R N. —
" (1) IN GENERAL.—For purposes of subsection (d), the minimum investment r e t u r n for any p r i v a t e foundation for any taxable year is 5 percent of the excess of— " (A) the aggregate fair market value of all assets of the foundation other than those which a r e used (or held for use) directly in carrying out the foundation's exempt purpose, over " (B) the acquisition indebtedness with respect to such assets (determined under section 614(c)(1) without regard to the taxable year in which the indebtedness was i n c u r r e d).
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"(2) VALUATION.—
" (A) IN GENERAL.—For purposes of paragraph (1)(A), the fair market value of securities for which market quotations are readily available shall be determined on a monthly basis. For all other assets, the fair market value shall be deter- Regulations, mined at such times and in such manner as the Secretary shall by regulations prescribe. "(B)
REDUCTIONS I N VALUE FOR BLOCKAGE OR SIMILAR FAC-
TORS.—In determining the value of any securities under this paragraph, the fair market value of such securities (determined without regard to any reduction in value) shall not be reduced unless, and only to the extent that, the private foundation establishes that as a result of— " (i) the size of the block of such securities, " ( i i) the fact that the securities held are securities in a closely held corporation, or " ( i i i) the fact that the sale of such securities would result in a forced or distress sale, the securities could not be liquidated within a reasonable period of time except at a price less than such fair market value. Any reduction in value allowable under this subparagraph shall not exceed 10 percent of such fair market value." (b) EFFECTIVE D A T E. — The amendment made by this section applies 26 USC 4942 to taxable years beginning after December 31, 1975. "o*^SEC. 1304. EXTENSION OF TIME TO AMEND CHARITABLE REMAINDER TRUST GOVERNING INSTRUMENT. (a) EXTENSION OF TIME.—Section 2055(e)(3) ( r e l a t i n g to the allow- 26 USC 2055. ance of deductions in certain cases) is amended— (1) by striking out "Sentember 21, 1974," and inserting in lieu thereof "December 31, 1977,", and (2) by striking: out "December 31, 1975" each place it appears and inserting in lieu thereof "December 31.1977".
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