[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 147 Introduced in House (IH)]







108th CONGRESS
  1st Session
                                H. R. 147

 To amend the Internal Revenue Code of 1986 to exclude from the gross 
 estate the value of certain works of artistic property created by the 
                               decedent.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 7, 2003

  Mr. Nadler introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to exclude from the gross 
 estate the value of certain works of artistic property created by the 
                               decedent.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Artists' Estate Tax Fairness Act''.

SEC. 2. EXCLUSION FROM GROSS ESTATE OF VALUE OF CERTAIN WORKS OF 
              ARTISTIC PROPERTY CREATED BY DECEDENT.

    (a) In General.--Section 2031 of the Internal Revenue Code of 1986 
(relating to definition of gross estate) is amended by striking 
subsection (d) and inserting after subsection (c) the following:
    ``(d) Works of Artistic Property Created by the Decedent.--
            ``(1) In general.--If the executor makes the election 
        described in paragraph (4), there shall be excluded from the 
        gross estate the value of each qualified work of artistic 
        property held by the decedent at the time of his death if, by 
        his personal efforts, the decedent created such qualified work 
        of artistic property.
            ``(2) Application.--Paragraph (1) shall not apply unless 
        the decedent held at the time of his death not less than 50 of 
        such qualified works of artistic property.
            ``(3) Qualified work of artistic property.--For purposes of 
        paragraph (1), the term `qualified work of artistic property' 
        means a--
                    ``(A) painting,
                    ``(B) drawing,
                    ``(C) sculpture,
                    ``(D) sculpture that is in multiple cast, carved, 
                or fabricated of 200 or fewer that are consecutively 
                numbered by the decedent and bear the signature or 
                other existing mark of the decedent,
                    ``(E) monoprint or monotype that is a unique print 
                or a print pulled in an edition of 1: a single 
                impression,
                    ``(F) print that is in a limited edition of not 
                more than 200 copies that are signed and consecutively 
                numbered by the decedent, or
                    ``(G) a still photographic image produced for 
                exhibition purposes only, existing in a single copy 
                that is signed by the decedent, or in a limited edition 
                of 200 copies or fewer that are signed and 
                consecutively numbered by the decedent.
            ``(4) Election.--The election under this subsection shall 
        be made on or before the due date (including extensions) for 
        filing the return of tax imposed by section 2001 and shall be 
        made on such return.
    ``(e) Cross References.--

                                ``(1) For executor's right to be 
furnished on request a statement regarding any valuation made by the 
Secretary within the gross estate, see section 7517.
                                ``(2) For income in respect of a 
decedent in the case of works of art of the decedent who created such 
property, see section 691.''.
    (b) Income in Respect of Decedents.--Subsection (a) of section 691 
of such Code (relating to inclusion in gross income of recipients of 
income in respect of decedents) is amended by adding at the end the 
following new paragraph:
            ``(6) Certain works of artistic property.--For purposes of 
        paragraphs (1), (2), and (3), a work of artistic property whose 
        value was excluded from the gross estate of a decedent under 
        section 2031(d) shall be treated as a right to receive an item 
        of income in respect of a decedent.''.
    (c) Carryover Basis.--
            (1) In general.--Subsection (a) of section 1014 of such 
        Code (relating to general rule for basis of property acquired 
        from a decedent) is amended by striking ``or'' at the end of 
        paragraph (3), by striking the period at the end of paragraph 
        (4) and inserting ``, or'', and by adding at the end the 
        following new paragraph:
            ``(5) in the case of a work of artistic property treated as 
        a right to receive an item of income in respect of the decedent 
        under section 691(a)(6), the basis in the hands of the 
        decedent.''.
            (2) Conforming amendment.--Subsection (c) of section 1014 
        of such Code (relating to property representing income in 
        respect of a decedent) is amended by striking ``This'' and 
        inserting ``Except as provided by subsection (a)(5), this.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to decedents dying after the date of the enactment of this Act.
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