Tax Reform Act

[AI summary unavailable — showing source text] Tax Reform Act - Title I: Gain on Certain Property Transferred at Death or by Gift - Provides that in the case of the death of a taxpayer there shall be included in computing taxable income for the taxable period in which falls the date of his death, the gains and losses which would be taken into account if the taxpayer had sold all property, which is considered to have been acquired from or to have passed from the decedent taxpayer at a selling price equal to its fair market value at death. Makes exceptions to this provision for household or personal items whose total value is less than $2000, and for property which passes or has passed to surviving spouses. Sets forth rules applicable in determining the basis for computing gain or loss. Makes provisions and rules for including gains and losses on lifetime property gifts in computing taxable income for the taxable period in which the transfer was made. Requires the filing of a final income tax return for a decedent by April 15 of the year following the taxable year, or 9 months after the date of death, whichever is later. Makes provisions for extension of time for paying the tax. Title II: State and Local Bonds - Allows a state or…