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TITLE 26-INTERNAL REVENUE CODE decedent during his lifetime in trust to pay the income for life to or on the order or direc- tion of the decedent with the right reserved to the decedent at all times before his death to make any change in the enjoyment thereof through the exercise of a power to alter, amend, or terminate the trust; (4) Property passing without full and ade- quate consideration under a general power of appointment exercised by the decedent by will; (5) In the case of decedents dying after August 26, 1937, property acquired by be- quest, devise, or inheritance or by the dece- dent's estate from the decedent, if the proper- ty consists of stock or securities of a foreign corporation, which with respect to its taxable year next preceding the date of the dece- dent's death was, under the law applicable to such year, a foreign personal holding compa- ny. In such case, the basis shall be the fair market value of such property at the date of the decedent's death or the basis in the hands of the decedent, whichever Is lower; (6) In the case of decedents dying after De- cember 31, 1947, property which represents the surviving spouse's one-half share of com- munity property held by the decedent and the surviving spouse under the community property laws of any State or possession of the United States or any foreign country, if at least one-half of the whole of the commu- nity interest in such property was includible in determining the value of the decedent's gross estate under chapter 11 of subtitle B (section 2001 and following, relating to estate tax) or section 811 of the Internal Revenue Code of 1939; (7) In the case of decedents dying after Oc- tober 21, 1942, and on or before December 31, 1947, such part of any property, representing the surviving spouse's one-half share of prop- erty held by a decedent and the surviving spouse under the community property laws of any State or possession of the United States or any foreign country, as was included in de- termining the value of the gross estate of the decedent, if a tax under chapter 3 of the In- ternal Revenue Code of 1939 was payable on the transfer of the net estate of the decedent. In such case, nothing in this paragraph shall reduce the basis below that which would exist if the Revenue Act of 1948 had not been en- acted; (8) In the case of decedents dying after De- cember 31, 1950, and before January 1, 1954, property which represents the survivor's in- terest in a joint and survivor's annuity if the value of any part of such interest was re- quired to be included in determining the value of decedent's gross estate under section 811 of the Internal Revenue Code of 1939; (9) In the case of decedents dying after De- cember 31, 1953, property acquired from the decedent by reason of death, form of owner- ship, or other conditions (including property acquired through the exercise or non-exercise of a power of appointment), if by reason thereof the property is required to be includ- ed in determining the value of the decedent's gross estate under chapter 11 of subtitle B or under the Internal Revenue tCode of 1939. In such case, if the property is acquired before the death of the decedent, the basis shall be the amount determined under subsection (a) reduced by the amount allowed to the tax- payer as deductions in computing taxable income under this subtitle or prior income tax laws for exhaustion, wes. and tear, obso- lescence, amortization, and depletion on such property before the death of the decedent, Such basis shall be applicable to the property commencing on the death of the decedent. This paragraph shall not apply to- (A) annuities described in section 72; (B) property to which paragraph (5) would apply if the property had been ac- quired by bequest; and (C) property described in any other para- graph of this subsection. (c) Property representing income in respect of a dece- dent This section shall not apply to property which constitutes a right to receive an item of income in respect of a decedent under section 691. (d) Decedents dying after December 31, 1976 In the case of a decedent dying after Decem- ber 31, 1976, the section shall not apply to any property for which a carryover basis is provided by section 1023. (Aug. 16, 1954, ch. 736, 68A Stat. 296; Feb. 11, 1958, Pub. L. 85-320, § 2, 72 Stat. 5; Dec. 10, 1971, Pub. L. 92-178, title V, § 502(f), 85 Stat. 550; Oct. 4, 1976, Pub. L. 94-455, title XIX, § 1901(c)(8), title XX, § 2005(a)(1), 90 Stat. 1803, 1872.) REFERENCEs IN TEXT Section 811 of the Internal Revenue Code of 1939, referred to in subsecs. (a) and (b)(6), (8), was classified to section 811 of former Title 26, Internal Revenue Code. For table of comparisons of the 1939 Code to the 1954 Code, see Table I preceding section 1 of this title. See, also, section 7851(e) of this title for provi- sion that references in the 1954 Code to a provision of the 1939 Code, not then applicable, shall be deemed a reference to the corresponding provision of the 1954 Code, which is then applicable. Chapter 3 of the Internal Revenue Code of 1939, re- ferred to in subsec. (b)(7), was comprised of sections 800 to 951 of former Title 26, Internal Revenue Code. For table of comparisons of the 1939 Code to the 1954 Code, see Table I preceding section 1 of this title. See also section 7851(a)(2)(A) of this title for applicability of chapter 3 of former title 26. See also section 7851(e) of this title for provision that references in the 1954 Code to a provision of the 1939 Code, not then applica- ble, shall be deemed a reference to the corresponding provision of the 1954 Code, which is then applicable. Revenue Act of 1948, referred to in subsec. (b)(7), is act Apr. 2, 1948, ch. 168, 62 Stat. 110. The Internal Revenue Code of 1939, referred to in subsee. (b)(9), is act Feb. 10, 1939, ch. 2. 53 Stat. 1, as amended. Prior to the enactment of the Internal Rev- enue Code of 1954, the 1939 Code was classified to former Title 26, Internal Revenue Code. For table of comparisons of the 1939 Code to the 1954 Code, see Table I preceding section 1 of this title. AMENDMENTS 1976-Subsecs. (b)(6), (7). Pub. L. 94-455, § 1901(c)(8). struck out "Territory" following "under the community property laws of any State,". Subsec. (d). Pub. L. 94-455, § 2005(a)(1), substituted provisions relating to the applicability of this section Page 635 § 1014