BASIS RECOVERY RULES FOR ANNUITIES OVER MORE THAN ONE LIFE.

SEC. 1075. BASIS RECOVERY RULES FOR ANNUITIES OVER MORE THAN ONE LIFE. (a) In General.—Section 72(d)(1)(B) is amended by adding at the end the following new clause: “(iv) Number of anticipated payments where more than one life.—If the annuity is payable over the lives of more than 1 individual, the number of anticipated payments shall be determined as follows: “If the combined ages of annuitants are: The number is: Not more than 110 410.00 More than 110 but not more than 120 360.00 More than 120 but not more than 130 310.00 More than 130 but not more than 140 260.00 More than 140 210.”. (b) Conforming Amendment.—Section 72(d)(1)(B)(iii) is amended— (1) by inserting “If the annuity is payable over the life of a single individual, the number of anticipated payments shall be determined as follows:” after the heading and before the table, and (2) by striking “primary” in the table. (c) Effective Date.—The amendments made by this section shall apply with respect to annuity starting dates beginning after December 31, 1997.