-10- In 1976, subsection (b) of section 2040 was added to the Code by section 2002(c)(1) of the Tax Reform Act of 1976 (TRA 76), Pub. L. 94-455, 90 Stat. 1520, 1855.6 The 1976 amendment created a special rule where the joint tenants were husband and wife. If the interest was a "qualified joint interest",7 only one-half of the value of the property owned in joint tenancy was includable in the decedent's gross estate, without regard to 6As enacted in 1976 sec. 2040(b) read: (b) Certain Joint Interests of Husband and Wife.-- (1) Interests of spouse excluded from gross estate.-- Notwithstanding subsection (a), in the case of any qualified joint interest, the value included in the gross estate with respect to such interest by reason of this section is one-half of the value of such qualified joint interest. (2) Qualified joint interest defined.--For purposes of paragraph (1), the term "qualified joint interest" means any interest in property held by the decedent and the decedent's spouse as joint tenants or as tenants by the entirety, but only if-- (A) such joint interest was created by the decedent, the decedent's spouse, or both, (B)(i) in the case of personal property, the creation of such joint interest constituted in whole or in part a gift for purposes of chapter 12, or (ii) in the case of real property, an election under section 2515 applies with respect to the creation of such joint interest, and (C) in the case of a joint tenancy, only the decedent and the decedent's spouse are joint tenants. 7A "qualified joint interest" was defined as a joint tenancy between husband and wife, or a tenancy by the entirety, where (1) such interest was created by the decedent, the decedent's spouse, or both, and (2) the creation of the joint interest must have been a gift subject to Federal gift tax.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011