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131 STAT. 2151 PUBLIC LAW 115–97—DEC. 22, 2017 (2) Section 6047 is amended— (A) by redesignating subsection (g) as subsection (h), (B) by inserting after subsection (f) the following new subsection: ‘‘(g) INFORMATION RELATING TO LIFE INSURANCE CONTRACT TRANSACTIONS.—This section shall not apply to any information which is required to be reported under section 6050Y.’’, and (C) by adding at the end of subsection (h), as so redesig- nated, the following new paragraph: ‘‘(4) For provisions requiring reporting of information relating to certain life insurance contract transactions, see sec- tion 6050Y.’’. (d) EFFECTIVE DATE.—The amendments made by this section shall apply to— (1) reportable policy sales (as defined in section 6050Y(d)(2) of the Internal Revenue Code of 1986 (as added by subsection (a)) after December 31, 2017, and (2) reportable death benefits (as defined in section 6050Y(d)(4) of such Code (as added by subsection (a)) paid after December 31, 2017. SEC. 13521. CLARIFICATION OF TAX BASIS OF LIFE INSURANCE CON- TRACTS. (a) CLARIFICATION WITH RESPECT TO ADJUSTMENTS.—Para- graph (1) of section 1016(a) is amended by striking subparagraph (A) and all that follows and inserting the following: ‘‘(A) for— ‘‘(i) taxes or other carrying charges described in section 266; or ‘‘(ii) expenditures described in section 173 (relating to circulation expenditures), for which deductions have been taken by the taxpayer in determining taxable income for the taxable year or prior taxable years; or ‘‘(B) for mortality, expense, or other reasonable charges incurred under an annuity or life insurance contract;’’. (b) EFFECTIVE DATE.—The amendment made by this section shall apply to transactions entered into after August 25, 2009. SEC. 13522. EXCEPTION TO TRANSFER FOR VALUABLE CONSIDER- ATION RULES. (a) IN GENERAL.—Subsection (a) of section 101 is amended by inserting after paragraph (2) the following new paragraph: ‘‘(3) EXCEPTION TO VALUABLE CONSIDERATION RULES FOR COMMERCIAL TRANSFERS.— ‘‘(A) IN GENERAL.—The second sentence of paragraph (2) shall not apply in the case of a transfer of a life insurance contract, or any interest therein, which is a reportable policy sale. ‘‘(B) REPORTABLE POLICY SALE.—For purposes of this paragraph, the term ‘reportable policy sale’ means the acquisition of an interest in a life insurance contract, directly or indirectly, if the acquirer has no substantial family, business, or financial relationship with the insured apart from the acquirer’s interest in such life insurance contract. For purposes of the preceding sentence, the term ‘indirectly’ applies to the acquisition of an interest in a 26 USC 1016 note. 26 USC 6047 note. 26 USC 6047. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00099 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS