80TH CONG., 2D SESS.- - CIL 168-APR. 2,1948 of the net estate of the decedent, then for the purposes of this para- graph such part of such one-half share of the surviving spouse shall be considered to be property 'acquired by bequest, devise, or inheritance' from the decedent, if the death of the decedent was after the date of the enactment of the Revenue Act of 1942 and on or before December 31, 1947; but nothing in this sentence shall reduce basis below that which would exist if the Revenue Act of 1948 had not been enacted." (b) If the allowance of a credit or refund of any overpayment of tax resulting from the application of this section is prevented on the date of the enactment of this Act, or within one year from such date, by the operation of any law or rule of law (other than section 3761 of the Internal Revenue Code, relating to compromises), credit or refund of such overpayment may, nevertheless, be allowed or made if claim therefor is filed within one year from the date of the enactment of this Act. No interest shall be paid on any overpayment resulting from the application of the last sentence of section 113 (a) (5) of such code, as amended by this section, if such overpayment is for a taxable year beginning before January 1,1948. PART III-GIFT TAX SEC. 371. GIFTS OF COMMUNITY PROPERTY. Section 1000 (d) of the Internal Revenue Code (relating to gifts of property held as community property) is amended by adding at the end thereof a new sentence to read as follows: "This subsection shall be applicable only to gifts made after the calendar year 1942 and on or before the date of the enactment of the Revenue Act of 1948." SEC. 372. MARITAL DEDUCTION. Section 1004 (a) of the Internal Revenue Code (relating to deduc- tions in computing net gifts in the case of a citizen or resident of the United States) is hereby amended by adding at the end thereof a new paragraph to read as follows: "(3) GirT TO SPOUSE.- "(A) In General.-Where the donor transfers during the calendar year (and after the date of the enactment of the Revenue Act of 1948) by gift an interest in property to a donee who at the time of the gift is the donor's spouse-an amount with respect to such interest equal to one-half of its value. "(B) Life Estate or Other Terminable Interest. - Where, upon the lapse of time, upon the occurrence of an event or con- tingency, or upon 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- "(i) if the donor retains in himself, or transfers or has transferred (for less than an adequate and full consid- eration 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 "(ii) 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 56 Stat. 798. 53 Stat. 462. 26 U.S. 0. 3761. Ante, p. 124. 56 Stat. 053. 26U.S.0. §1000(d). 53 stat. 147 . 26U.S.O . §104 (a); Supp. , § 1004 (a). 62 STAT.] 125
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