26 U.S.C. § 878 — Foreign educational, charitable, and cer-

Page 2078 TITLE 26—INTERNAL REVENUE CODE § 878 Subparagraph (A) or (B) shall not apply to any individual unless the renunciation or vol- untary relinquishment is subsequently ap- proved by the issuance to the individual of a certificate of loss of nationality by the United States Department of State. (5) Long-term resident The term ‘‘long-term resident’’ has the meaning given to such term by section 877(e)(2). (6) Early distribution tax The term ‘‘early distribution tax’’ means any increase in tax imposed under section 72(t), 220(f)(4), 223(f)(4), 409A(a)(1)(B), 529(c)(6), 529A(c)(3), or 530(d)(4). (h) Other rules (1) Termination of deferrals, etc. In the case of any covered expatriate, not- withstanding any other provision of this title— (A) any time period for acquiring property which would result in the reduction in the amount of gain recognized with respect to property disposed of by the taxpayer shall terminate on the day before the expatriation date, and (B) any extension of time for payment of tax shall cease to apply on the day before the expatriation date and the unpaid portion of such tax shall be due and payable at the time and in the manner prescribed by the Secretary. (2) Step-up in basis Solely for purposes of determining any tax imposed by reason of subsection (a), property which was held by an individual on the date the individual first became a resident of the United States (within the meaning of section 7701(b)) shall be treated as having a basis on such date of not less than the fair market value of such property on such date. The pre- ceding sentence shall not apply if the indi- vidual elects not to have such sentence apply. Such an election, once made, shall be irrev- ocable. (3) Coordination with section 684 If the expatriation of any individual would result in the recognition of gain under section 684, this section shall be applied after the ap- plication of section 684. (i) Regulations The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section. (Added Pub. L. 110–245, title III, § 301(a), June 17, 2008, 122 Stat. 1638; amended Pub. L. 113–295, div. B, title I, § 102(e)(2), Dec. 19, 2014, 128 Stat. 4062; Pub. L. 115–97, title I, § 11002(d)(1)(BB), Dec. 22, 2017, 131 Stat. 2060; Pub. L. 115–141, div. U, title IV, § 401(a)(154), Mar. 23, 2018, 132 Stat. 1191.) INFLATION ADJUSTED ITEMS FOR CERTAIN YEARS For inflation adjustment of certain items in this section, see Revenue Procedures listed in a table under section 1 of this title. Editorial Notes AMENDMENTS 2018—Subsec. (g)(6). Pub. L. 115–141 substituted ‘‘220(f)(4)’’ for ‘‘220(e)(4)’’. 2017—Subsec. (a)(3)(B)(i)(II). Pub. L. 115–97 sub- stituted ‘‘for ‘calendar year 2016’ in subparagraph (A)(ii)’’ for ‘‘for ‘calendar year 1992’ in subparagraph (B) thereof’’. 2014—Subsec. (e)(2). Pub. L. 113–295, § 102(e)(2)(A), in- serted ‘‘a qualified ABLE program (as defined in sec- tion 529A),’’ after ‘‘529),’’. Subsec. (g)(6). Pub. L. 113–295, § 102(e)(2)(B), inserted ‘‘529A(c)(3),’’ after ‘‘529(c)(6),’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2017 AMENDMENT Amendment by Pub. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, see section 11002(e) of Pub. L. 115–97, set out as a note under section 1 of this title. EFFECTIVE DATE OF 2014 AMENDMENT Amendment by Pub. L. 113–295 applicable to taxable years beginning after Dec. 31, 2014, see section 102(f)(1) of Pub. L. 113–295, set out as a note under section 552a of Title 5, Government Organization and Employees. EFFECTIVE DATE Section applicable to any individual whose expatria- tion date is on or after June 17, 2008, see section 301(g)(1) of Pub. L. 110–245, set out as a note under sec- tion 2801 of this title. § 878. Foreign educational, charitable, and cer- tain other exempt organizations For special provisions relating to foreign edu- cational, charitable, and other exempt organiza- tions, see sections 512(a) and 4948. (Aug. 16, 1954, ch. 736, 68A Stat. 282, § 877; renum- bered § 878, Pub. L. 89–809, title I, § 103(f)(1), Nov. 13, 1966, 80 Stat. 1551; amended Pub. L. 91–172, title I, § 101(j)(20), Dec. 30, 1969, 83 Stat. 528.) Editorial Notes AMENDMENTS 1969—Pub. L. 91–172 substituted provisions requiring reference to organizations in sections 512(a) and 4948 for provisions requiring reference to trusts in section 512(a), and struck out reference to unrelated business income. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1969 AMENDMENT Amendment by Pub. L. 91–172 applicable to taxable years beginning after Dec. 31, 1969, see section 101(k)(2)(B) of Pub. L. 91–172, set out as an Effective Date note under section 4940 of this title. § 879. Tax treatment of certain community in- come in the case of nonresident alien indi- viduals (a) General rule In the case of a married couple 1 or both of whom are nonresident alien individuals and who have community income for the taxable year, such community income shall be treated as fol- lows: (1) Earned income (within the meaning of section 911(d)(2)), other than trade or business