any other provision of this section, in the case of a distribution of stock from an estate or trust to a beneficiary, the beneficiary (and not the estate or trust) shall be treated as the shareholder to which this section applies with respect to periods after such distribution. (2) Certain transfers involving spouses Notwithstanding any other provision of this section, in the case of a transfer described in section 1041, the transferee (and not the transferor) shall be treated as the shareholder to which this section applies with respect to periods after such transfer. (i) Treatment of income in respect of the decedent (1) Adjustment to built-in gain of property held by S corporation For purposes of subsection (b)(2), the fair market value of any property taken into account under subparagraph (A) thereof shall be decreased by any amount of income in respect of the decedent with respect to such property to which section 691 applies. For purposes of subsection (e)(1)(A), the gain recognized on the disposition of such property shall be reduced by such amount. (2) Adjustment to basis of S corporation stock For adjustment to basis of S corporation stock, see section 1367(b)(4)(B). (j) Reporting Except as otherwise provided by the Secretary, for purposes of section 6037, the amounts determined under subsections (b)(2), (e)(1), and (f)(2) shall be treated as items of the corporation and the pro rata share determined under such subsection shall be furnished to the shareholder under section 6037(b). . (b) Adjustment to basis of stock (1) In general Section 1367(a)(2) is amended by striking and at the end of subparagraph (D), by striking the period at the end of subparagraph (E) and inserting , and , and by inserting after subparagraph (E) the following new subparagraph: (F) the amount of the shareholder’s deduction under section 1369. . (2) Adjustment not taken into account in determining treatment of distributions Section 1368 is amended— (A) in subsection (d)(1), by inserting (other than subsection (a)(2)(F) thereof)