at the end of subparagraph (II) and inserting , or , and by inserting after subparagraph (II) the following new subparagraph: (JJ) subsection (a)(2), (b)(2), or (c)(2) of section 6050X (relating to returns relating to certain life insurance contract transactions). . (3) Section 6047 of such Code is amended— (A) by redesignating subsection (g) as subsection (h), (B) by inserting after subsection (f) the following new subsection: (g) Information relating to life insurance contract transactions This section shall not apply to any information which is required to be reported under section 6050X. , and (C) by adding at the end of subsection (h), as so redesignated, the following new paragraph: (4) For provisions requiring reporting of information relating to certain life insurance contract transactions, see section 6050X. . (d) Effective date The amendments made by this section shall apply to— (1) reportable policy sales after December 31, 2017, and (2) reportable death benefits paid after December 31, 2017. 2. Clarification of tax basis of life insurance contracts (a) In general Paragraph (1) of section 1016(a) of the Internal Revenue Code of 1986 is amended by striking subparagraph (A) and all that follows and inserting the following: (A) for— (i) taxes or other carrying charges described in section 266, or (ii) expenditures described in section 173 (relating to circulation expenditures), for which deductions have been taken by the taxpayer in determining taxable income for the taxable year or prior taxable years, or (B) for mortality, expense, or other reasonable charges incurred under an annuity or life insurance contract. . (b) Effective date The amendment made by this section shall apply to transactions entered into after August 25, 2009. 3. Exception to transfer for valuable consideration rules (a) In general Subsection (a) of section 101 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (3) Exception to valuable consideration rules for commercial transfers (A)