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U.S. Code as of:
01/19/04
Section 955. Tax exemption
(a) The right to an equalization allotment or to a cash payment
in lieu thereof pursuant to section 953(d) of this title, shall be
transferable by will or descent in the same manner as are trust
payments under existing law and shall not be subject to State or
Federal inheritance, estate, legacy, or succession taxes.
(b) A cash payment made in lieu of an equalization allotment
pursuant to section 953(d) of this title shall not be regarded as
income or capital gain for purposes of Federal or State income
taxation and shall not, as long as it remains in the form of cash
or a bank deposit in the ownership of the allottee, be subject to
taxation as personal property. A payment and the income derived
therefrom heretofore or hereafter made to an allottee as
compensation for the acquisition of part or all of the allottee's
allotment for a public purpose is -
(1) deemed a cash payment in lieu of an allotment for purposes
of this subsection;
(2) deemed a right under subsection (a) of this section; and
(3) subject to sections 409a and 410 of this title.
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