State Of New York et al v. Mnuchin et al

Filing 47

DECLARATION of Owen T. Conroy in Support re: 44 CROSS MOTION for Summary Judgment .. Document filed by State Of Connecticut, State Of New York, State of Maryland, State of New Jersey. (Attachments: # 1 Exhibit 1, # 2 Exhibit 2, # 3 Exhibit 3, # 4 Exhibit 4, # 5 Exhibit 5, # 6 Exhibit 6, # 7 Exhibit 7, # 8 Exhibit 8, # 9 Exhibit 9, # 10 Exhibit 10, # 11 Exhibit 11, # 12 Exhibit 12, # 13 Exhibit 13, # 14 Exhibit 14, # 15 Exhibit 15, # 16 Exhibit 16, # 17 Exhibit 17, # 18 Exhibit 18, # 19 Exhibit 19, # 20 Exhibit 20, # 21 Exhibit 21, # 22 Exhibit 22, # 23 Exhibit 23, # 24 Exhibit 24, # 25 Exhibit 25, # 26 Exhibit 26, # 27 Exhibit 27, # 28 Exhibit 28, # 29 Exhibit 29, # 30 Exhibit 30, # 31 Exhibit 31, # 32 Exhibit 32, # 33 Exhibit 33, # 34 Exhibit 34, # 35 Exhibit 35, # 36 Exhibit 36, # 37 Exhibit 37, # 38 Exhibit 38, # 39 Exhibit 39, # 40 Exhibit 40, # 41 Exhibit 41, # 42 Exhibit 42, # 43 Exhibit 43, # 44 Exhibit 44, # 45 Exhibit 45, # 46 Exhibit 46, # 47 Exhibit 47, # 48 Exhibit 48, # 49 Exhibit 49, # 50 Exhibit 50, # 51 Exhibit 51, # 52 Exhibit 52, # 53 Exhibit 53, # 54 Exhibit 54, # 55 Exhibit 55, # 56 Exhibit 56, # 57 Exhibit 57, # 58 Exhibit 58, # 59 Exhibit 59, # 60 Exhibit 60, # 61 Exhibit 61, # 62 Exhibit 62, # 63 Exhibit 63, # 64 Exhibit 64, # 65 Exhibit 65, # 66 Exhibit 66, # 67 Exhibit 67, # 68 Exhibit 68, # 69 Exhibit 69, # 70 Exhibit 70, # 71 Exhibit 71, # 72 Exhibit 72, # 73 Exhibit 73, # 74 Exhibit 74, # 75 Exhibit 75, # 76 Exhibit 76, # 77 Exhibit 77, # 78 Exhibit 78, # 79 Exhibit 79, # 80 Exhibit 80, # 81 Exhibit 81, # 82 Exhibit 82, # 83 Exhibit 83, # 84 Exhibit 84, # 85 Exhibit 85, # 86 Exhibit 86, # 87 Exhibit 87, # 88 Exhibit 88, # 89 Exhibit 89, # 90 Exhibit 90, # 91 Exhibit 91, # 92 Exhibit 92, # 93 Exhibit 93, # 94 Exhibit 94, # 95 Exhibit 95, # 96 Exhibit 96, # 97 Exhibit 97, # 98 Exhibit 98, # 99 Exhibit 99, # 100 Exhibit 100, # 101 Exhibit 101, # 102 Exhibit 102, # 103 Exhibit 103, # 104 Exhibit 104, # 105 Exhibit 105, # 106 Exhibit 106)(Conroy, Owen)

Exhibit 63

100 STAT. 2116

PUBLIC LAW 99-514—OCT. 22, 1986
"(i) paragraph (1) (other than subparagraph (C)
thereof) shall be applied separately with respect to each
spouse, but
"(ii) paragraph (IXC) shall be applied with respect to
their combined adjusted gross income.
"(C) DETERMINATION OF MARITAL STATUS.—For purposes of
this subsection, marital status shall be determined under
section 7703(a).
"(D) JOINT RETURN—For purposes of this subsection, the
term 'joint return' means the joint return of a husband and
wife made under section 6013."

(c) MOVING EXPENSE DEDUCTION NOT ALLOWABLE IN COMPUTING
ADJUSTED GROSS INCOME.—Subsection (a) of section 62 (as amended
by subsection (b)) is amended by striking out paragraph (8).
(d) CLERICAL AMENDMENT.—The table of sections for part I of
subchapter B of chapter 1 is amended by adding at the end thereof
the following new item:
"Sec. fi7. 2-percent floor on miscellaneous itemized deductions."
SEC. 133. MEDICAL EXPENSE DEDUCTION LIMITATION INCREASED.

Subsection (a) of section 213 (relating to deduction for medical,
dental, etc., expenses) is amended by striking out "5 percent" and
inserting in lieu thereof "7.5 percent".
SEC. 134. REPEAL OF DEDUCTION FOR STATE AND LOCAL SALES TAXES.

(a) GENERAL RULE.—Subsection (a) of section 164 (relating to
deduction for taxes) is amended—
(1) by striking out paragraph (4) and by redesignating paragraph (5) as paragraph (4), and
(2) by adding at the end thereof the following new sentence:
"Notwithstanding the preceding sentence, any tax (not described in the first sentence of this subsection) which is paid or
accrued by the taxpayer in connection with an acquisition or
disposition of property shall be treated as part of the cost of the
acquired property or, in the case of a disposition, as a reduction
in the amount realized on the disposition."
(b) CONFORMING AMENDMENTS.—Subsection (b) of section 164 is
amended—
(1) by striking out paragraphs (2) and (5), and
(2) by redesignating paragraphs (3) and (4) as paragraphs (2)
and (3), respectively.
SEC. 135. REPEAL OF DEDUCTION FOR ADOPTION EXPENSES.

(a) GENERAL RULE.—Section 222 (relating to deduction for adoption expenses) is hereby repealed.
(b) CONFORMING AMENDMENTS.—
(1) Section 223 is redesignated as section 220.
(2) The table of sections for part VII of subchapter B of
chapter 1 is amended by striking out the items relating to
sections 222 and 223 and inserting in lieu thereof the following:
"Sec. 220. Cross references."

PUBLIC LAW 99-514-OCT. 22,1986

100 STAT. 2729

"(b) INFORMATION RETURNS.—The Secretary may by regulations
require a return to be filed containing such information as he
determines to be necessary for purposes of this chapter.
"SEC. 2663. REGULATIONS.

"The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this chapter,
including—
"(1) such regulations as may be necessary to coordinate the
provisions of this chapter with the recapture tax imposed under
section 2032A(c), and
"(2) regulations (consistent with the principles of chapters 11
and 12) providing for the application of this chapter in the case
of transferors who are nonresidents not citizens of the United
States."
(b) CLERICAL AMENDMENT.—The table of chapters for subtitle B is
amended by striking out the item relating to chapter 13 and inserting in lieu thereof the following:
"CHAPTER

lit. Tax on generation-skipping transfers."

SEC. 1432. RELATED AMENDMENTS.

(a) INCOME TAX DEDUCTION FOR GENERATION-SKIPPING TRANSFER
TAX —
(1) IN GENERAL.—Subsection (a) of section 164 (relating to
deduction for certain taxes), as amended by section 134, is
amended by inserting after paragraph (4) the following new
paragraph:
"(5) the GST tax imposed on income distributions."
(2) DEFINITIONS.—Subsection (b) of section 164, as so amended,
is amended by adding at the end thereof the following new
paragraph:
"(4) SPECIAL RULES FOR GST TAX.—
"(A) IN GENERAL.—The GST tax imposed on income distributions is—
"(i) the tax imposed by section 2601, and
"(ii) any State tax described in section 2604,
but only to the extent such tax is imposed on a transfer
which is included in the gross income of the distributee and
to which section 666 does not apply.
"(B) SPECIAL RULE FOR TAX PAID BEFORE DUE DATE.—Any
tax referred to in subparagraph (A) imposed with respect to
a transfer occurring during the taxable year of the distributee (or, in the case of a taxable termination, the trust)
which is paid not later than the time prescribed by law
(including extensions) for filing the return with respect to
such transfer shall be treated as having been paid on the
last day of the taxable year in which the transfer was
made."
(3) DEDUCTION FOR TAX IN CASE OF TAXABLE TERMINATIONS.—
Paragraph (3) of section 691(c) (relating to deduction for estate
tax) is amended to read as follows:
"(3) SPECIAL RULE FOR GENERATION-SKIPPING TRANSFERS.—In
the case of any tax imposed by chapter 13 on a taxable termination or a direct skip occurring as a result of the death of the
transferor, there shall be allowed a deduction (under principles
similar to the principles of this subsection) for the portion of
such tax attributable to items of gross income of the trust which

100 STAT. 2730

PUBLIC LAW 99-514—OCT. 22, 1986

were not properly includible in the gross income of the trust for
periods before the date of such termination."
(b) DISTRIBUTIONS IN REDEMPTION OF STOCK TO PAY GENERATIONSKIPPING TRANSFER TAXES.—Subsection (d) of section 303 is amended
to read as follows:
"(d) SPECIAL RULES FOR GENERATION-SKIPPING TRANSFERS.—Where
stock in a corporation is the subject of a generation-skipping transfer (within the meaning of section 2611(a)) occurring at the same
time as and as a result of the death of an individual—
"(1) the stock shall be deemed to be included in the gross
estate of such individual;
"(2) taxes of the kind referred to in subsection (aXD which are
imposed because of the generation-skipping transfer shall be
treated as imposed because of such individual's death (and for
this purpose the tax imposed by section 2601 shall be treated as
an estate tax);
"(3) the period of distribution shall be measured from the date
of the generation-skipping transfer; and
"(4) the relationship of stock to the decedent's estate shall be
measured with reference solely to the amount of the generationskipping transfer."
(c) AVAILABILITY OF ALTERNATE VALUATION ELECTION.—
(1) IN GENERAL.—Paragraph (2) of section 2032(c) (relating to
election must decrease gross estate and estate tax) is amended
to read as follows:
"(2) the sum of the tax imposed by this chapter and the tax
imposed by chapter 13 with respect to property includible in the
decedent's gross estate (reduced by credits allowable against
such taxes)."
(2) CONFORMING AMENDMENT.—Subsection (g) of section 2013
is hereby repealed.
(d) GENERATION-SKIPPING TAX TREATED AS TAXABLE GIFT —
(1) IN GENERAL.—Subchapter B of chapter 12 is amended by
inserting after section 2514 the following new section:
"SEC. 2515. TREATMENT OF GENERATION-SKIPPING TRANSFER TAX.

"In the case of any taxable gift which is a direct skip (within the
meaning of chapter 13), the amount of such gift shall be increased by
the amount of any tax imposed on the transferor under chapter 13
with respect to such gift."
(2) CLERICAL AMENDMENT.—The table of sections for subchapter B of chapter 12 is amended by inserting after the item
relating to section 2514 the following new item:
"Sec. 2515. Treatment of generation-skipping transfer tax."

(e)

EXTENSION OF TIME FOR PAYMENT OF TAX ON CERTAIN DIRECT
SKIPS.—Section 6166 is amended by redesignating subsections (i) and

(j) as subsections (j) and (k), respectively, and by inserting after
subsection (h) the following new subsection:
"(i) SPECIAL RULE FOR CERTAIN DIRECT SKIPS.—To the extent that
an interest in a closely held business is the subject of a direct skip
(within the meaning of section 2612(c)) occurring at the same time as
and as a result of the decedent's death, then for purposes of this
section any tax imposed by section 2601 on the transfer of such
interest shall be treated as if it were additional tax imposed by
section 2001."