104 STAT. 1388-472 PUBLIC LAW 101-508—NOV. 5, 1990 dure which is directed at improving the patient's appearance and does not meaningfully promote the proper function of the body or prevent or treat illness or disease." 26 USC 213 note. (b) EFFECTIVE DATE.—The amendment made by this section shall apply to taxable years beginning after December 31, 1990. SEC. 11343. SPECIAL RULES WHERE GRANTOR OF TRUST IS A FOREIGN PERSON. (a) IN GENERAL. — Section 672 (relating to definitions and rules) is amended by adding at the end thereof the following new subsection: "(f) SPECIAL RULE WHERE GRANTOR IS FOREIGN PERSON.— "(1) IN GENERAL,—I f — "(A) but for this subsection, a foreign person would be treated as the owner of any portion of a trust, and "(B) such trust has a beneficiary who is a United States person, such beneficiary shall be treated as the grantor of such portion to the extent such beneficiary has made transfers of property by gift (directly or indirectly) to such foreign person. For purposes of the preceding sentence, any gift shall not be taken into account to the extent such gift would be excluded from taxable gifts under section 2503(b). "(2) REGULATIONS.—The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this subsection." 26 USC 672 note. (b) EFFECTIVE DATE.—The amendments made by this section shall apply to— (1) any trust created after the date of the enactment of this Act, and (2) any portion of a trust created on or before such date which is attributable to amounts contributed to the trust after such date. SEC. 11344. TREATMENT OF CONTRIBUTIONS OF APPRECIATED PROP- ERTY UNDER MINIMUM TAX. Subparagraph (B) of section 57(a)(6) (relating to appreciated property charitable deduction) is amended by adding at the end thereof the following new sentence: "In the case of any taxable year beginning in 1991, such term shall not include any tangible personal property." Subtitle D—1-Year Extension of Certain Expiring Tax Provisions SEC. 11401. ALLOCATION OF RESEARCH AND EXPERIMENTAL EXPENDI- TURES. (a) EXTENSION. —Paragraph (5) of section 864(f) (relating to allocation of research and experimental expenditures) is amended to read as follows: "(5) YEARS TO WHICH RULE APPLIES. — This subsection shall apply to the taxpayer's first 2 taxable years beginning after August 1, 1989, and on or before August 1, 1991." 26 USC 864 note. (b) EFFECTIVE DATE.— The amendment made by subsection (a) shall apply to taxable years beginning after August 1, 1989.