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TITLE 26-INTERNAL REVENUE CODE "or his delegate" following "Secretary" wherever ap- pearing. Subsec. (d)(1). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary". Subsec. (d)(2)(B). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary". EFFECTIVE DATE OF 1976 AMENDMENT Amendment of subsec. (b)(2) by section 1901(a)(15) of Pub. L. 94-455 applicable with respect to taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under section 2 of this title. EFFECTIVE DATE Section 321(d) of Pub. L. 91-172 provided that: "The amendments made by subsections (a) and (c) [to sec- tions 402(b), 403 (c), and (d), and 404(a)(5) of this title] shall apply to taxable years ending after June 30, 1969. The amendments made by subsection (b) [en- acting this section] shall apply with respect to contri- butions made and premiums paid after August 1, 1969." SECTION REmRED TO IN OTHER SECTIONS This section is referred to in sections 402, 403 of this title. § 84. Transfer of appreciated property to political or- ganization (a) General rule If- (1) any person transfers property to a politi- cal organization, and (2) the fair market value of such property exceeds its adjusted basis, then for purposes of this chapter the transferor shall be treated as having sold such property to the political organization on the date of the transfer, and the transferor shall be treated as having realized an amount equal to the fair market value of such property on such date. (b) Basis of property In the case of a transfer of property to a po- litical organization to which subsection (a) ap- plies, the basis of such property in the hands of the political organization shall be the same as it would be in the hands of the transferor, in- creased by the amount of gain recognized to the transferor by reason of such transfer. (c) Political organization defined For purposes of this section, the term "politi- cal organization" has the meaning given to such term by section 527(e)(1). (Added Pub. L. 93-625, § 13(a)(1), Jan. 3, 1975, 88 Stat. 2120.) EFFECTIVE DATE Section 13(b) of Pub. L. 93-625 provided that: "The amendments made by subsection (a) [enacting this section] shall apply to transfers made after May 7, 1974, in taxable years ending after such date." NONRECOGNITION OF GAIN OR LOSS WHERE ORGANIZA- TION SOLD CONTRIBUTED PROPERTY BEFORE AUGUST 2, 1973 Section 13(c) of Pub. L. 93-625 provided that in the case of the sale or exchange of property before Aug. 2, 1973, which was acquired by the exempt political orga- nization by contribution, no gain or loss shall be recog- nized by such organization. PART III-ITEMS SPECIFICALLY EXCLUDED FROM GROSS INCOME See. 101. Certain death payments. 102. Gifts and inheritances. 103. Interest on certain governmental obligations. 104. Compensation for injuries or sickness. 105. Amounts received under accident and health plans. 106. Contributions by employer to accident and health plans. 107. Rental value of parsonages. 108. Income from discharge of indebtedness. 109. Improvements by lessee on lessor's property. 110. Income taxes paid by lessee corporation. 111. Recovery of bad debts, prior taxes, and delin- quency amounts. 112. Certain combat pay of members of the Armed Forces. 113. Mustering-out payments for members of the Armed Forces. 114. Sports programs conducted for the American Na. tional Red Cross. 115. Income of States, municipalities, etc. 116. Partial exclusion of dividends received by individ- uals. 117. Scholarships and fellowship grants. 118. Contributions to the capital of a corporation. 119. Meals or lodging furnished for convenience of employer.' 120. Amounts received under qualified group legal ser- vices plans. 121. Gain from sale or exchange of residence of indi- vidual who has attained age 65. 122. Certain reduced uniformed services retirement pay. 123. Amounts received under insurance contracts for certain living expenses. 124. Cross references to other Acts. AMENDMENTS 1976-Pub. L. 94-455, title XXI, § 2134(c), Oct. 4, 1976, 90 Stat. 1928, added item 120. 1969-Pub. L. 91-172, title IX, § 901(b), Dec. 30, 1969, 83 Stat. 709, redesignated former item 123 as 124, and added item 123. 1966-Pub. L. 89-365, § 1(a)(2), Mar. 8, 1966, 80 Stat. 32, redesignated former item 122 as 123, and added item 122. 1964-Pub. L. 88-272, title II, § 206(b)(2), Feb. 26, 1964, 78 Stat. 40, redesignated former item 121 as 122, and added item 121. 1958-Pub. L. 85-866, title I, § 3(b), Sept. 2, 1958, 72 Stat. 1607, eliminated item 120. PART REFERRED TO IN OTHER SECTIONS This part is referred to in section 61 of this title. § 101. Certain death benefits (a) Proceeds of life insurance contracts payable by reason of death (1) General rule Except as otherwise provided in paragraph (2) and in subsection (d), gross income does not include amounts received (whether in a single sum or otherwise) under a life insur- ance contract, if such amounts are paid by reason of the death of the insured. (2) Transfer for valuable consideration In the case of a transfer for a valuable con- sideration, by assignment or otherwise, of a life insurance contract or any interest there- in, the amount excluded from gross income by paragraph (1) shall not exceed an amount 'So in original. Does not conform to section catch- line. Page 109 § 101