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131 STAT. 2180 PUBLIC LAW 115–97—DEC. 22, 2017 ‘‘(3) INCOME.—Subject to subsection (g), a Settlement Trust shall include in income the amount of any deduction allowed under this section in the taxable year in which the Settlement Trust actually receives such contribution. ‘‘(4) PERIOD.—The holding period under section 1223 of the Settlement Trust shall include the period the property was held by the Native Corporation. ‘‘(5) BASIS.—The basis that a Settlement Trust has for which a deduction is allowed under this section shall be equal to the lesser of— ‘‘(A) the adjusted basis of the Native Corporation in such property immediately before such contribution, or ‘‘(B) the fair market value of the property immediately before such contribution. ‘‘(6) PROHIBITION.—No deduction shall be allowed under this section with respect to any contributions made to a Settle- ment Trust which are in violation of subsection (a)(2) or (c)(2) of section 39 of the Alaska Native Claims Settlement Act (43 U.S.C. 1629e). ‘‘(g) ELECTION BY SETTLEMENT TRUST TO DEFER INCOME REC- OGNITION.— ‘‘(1) IN GENERAL.—In the case of a contribution which con- sists of property other than cash, a Settlement Trust may elect to defer recognition of any income related to such property until the sale or exchange of such property, in whole or in part, by the Settlement Trust. ‘‘(2) TREATMENT.—In the case of property described in para- graph (1), any income or gain realized on the sale or exchange of such property shall be treated as— ‘‘(A) for such amount of the income or gain as is equal to or less than the amount of income which would be included in income at the time of contribution under sub- section (f)(3) but for the taxpayer’s election under this subsection, ordinary income, and ‘‘(B) for any amounts of the income or gain which are in excess of the amount of income which would be included in income at the time of contribution under sub- section (f)(3) but for the taxpayer’s election under this subsection, having the same character as if this subsection did not apply. ‘‘(3) ELECTION.— ‘‘(A) IN GENERAL.—For each taxable year, a Settlement Trust may elect to apply this subsection for any property described in paragraph (1) which was contributed during such year. Any property to which the election applies shall be identified and described with reasonable particularity on the income tax return or an amendment or supplement to the return of the Settlement Trust, with such election to have effect solely for such taxable year. ‘‘(B) REVOCATION.—Any election made by a Settlement Trust pursuant to this subsection may be revoked pursuant to a timely filed amendment or supplement to the income tax return of such Settlement Trust. ‘‘(C) CERTAIN DISPOSITIONS.— ‘‘(i) IN GENERAL.—In the case of any property for which an election is in effect under this subsection and which is disposed of within the first taxable year VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00128 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS