Sec. 30542. Deemed realization of capital gains at time of gift or death

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Part IV of subchapter P of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: Any capital asset which is transferred by gift or upon death shall be treated as sold for its fair market value on the date of such gift, death, or transfer. This section shall not apply to any tangible personal property other than a collectible (as defined in section 408(m) without regard to paragraph

(3)thereof). This section shall not apply to any transfer if such transfer is made to the spouse or surviving spouse of the transferor. This section shall not apply to any transfer if such transfer is made to an organization described in section 170(c). . The table of sections for part IV of subchapter P of chapter 1 of such Code is amended by adding at the end the following new item: Sec. 1261. Gains from certain property transferred by gift or upon death. . Subsection

(a)section 1015 of the Internal Revenue Code of 1986 is amended— by striking If the property and inserting the following: If the property ; by inserting and before January 1, 2020 after after December 31, 1920 ; and by adding at the end the following new paragraph: If the property was acquired by gift after December 31, 2019, the basis shall be the fair market value of such property at the time of the gift. In the case of any property acquired by an organization described in section 170(c) by gift, subparagraph

(A)shall not apply and paragraph

(1)shall be applied without regard to the phrase and before January 1, 2022 . . Section 1014 of such Code is amended by adding at the end the following new subsection: In the case of any property acquired from or which has passed from a decedent in a transfer described in section 1041(a)(1), the basis of such property in the hands of the transferee shall be determined under section 1041(b) and not this section. . Section 1041(b) of the Internal Revenue Code of 1986 is amended to read as follows: In the case of any transfer of property described in subsection (a), the basis of the transferee in the property shall be the adjusted basis of the transferor. . Section 1015(e) of such Code is amended by striking 1041(b)(2) and inserting 1041(b) .