taxable years beginning after December 31, 2018. (2) Withholding The amendments made by paragraphs (3) and (4) of subsection (c) shall apply to amounts paid on or after January 1, 2019. 212. Deemed realization of capital gains at time of gift or death (a) Treatment as sale (1) In general Part IV of subchapter P of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: 1261. Gains from certain property transferred by gift or at death (a) In general Any capital asset which is transferred by gift or upon death shall be treated as sold for its fair market value on the date of such gift, death, or transfer. (b) Exceptions (1) Tangible property This section shall not apply to any tangible personal property other than a collectible (as defined in section 408(m) without regard to paragraph (3) thereof). (2) Spousal exception This section shall not apply to any transfer if such transfer is made to the spouse or surviving spouse of the transferor. (3) Gifts to charity This section shall not apply to any transfer if such transfer is made to an organization described in section 170(c). . (2) Clerical amendment The table of sections for part IV of subchapter P of chapter 1 of such Code is amended by adding at the end the following new item: Sec. 1261. Gains from certain property transferred by gift or upon death. . (b) Treatment of basis for gifts and bequests to which tax applies (1) Elimination of carryover basis for gifts Subsection (a) section 1015 of the Internal Revenue Code of 1986 is amended— (A) by striking If the property and inserting the following: (1) Gifts before January 1, 2019 If the property