+--- old/receiver.c
++++ new/receiver.c
+@@ -46,6 +46,7 @@ extern int keep_partial;
+ extern int checksum_seed;
+ extern int inplace;
+ extern int delay_updates;
++extern mode_t orig_umask;
+ extern struct stats stats;
+ extern char *log_format;
+ extern char *tmpdir;
+@@ -344,6 +345,10 @@ int recv_files(int f_in, struct file_lis
+ int itemizing = am_daemon ? daemon_log_format_has_i
+ : !am_server && log_format_has_i;
+ int max_phase = protocol_version >= 29 ? 2 : 1;
++ int dflt_perms = (ACCESSPERMS & ~orig_umask);
++#ifdef SUPPORT_ACLS
++ char *parent_dirname = "";
++#endif
+ int i, recv_ok;
+
+ if (verbose > 2)
+@@ -541,7 +546,16 @@ int recv_files(int f_in, struct file_lis
+ * mode based on the local permissions and some heuristics. */
+ if (!preserve_perms) {
+ int exists = fd1 != -1;
+- file->mode = dest_mode(file->mode, st.st_mode, exists);
++#ifdef SUPPORT_ACLS
++ char *dn = file->dirname ? file->dirname : ".";
++ if (parent_dirname != dn
++ && strcmp(parent_dirname, dn) != 0) {
++ dflt_perms = default_perms_for_dir(dn);
++ parent_dirname = dn;
++ }
++#endif
++ file->mode = dest_mode(file->mode, st.st_mode,
++ dflt_perms, exists);
+ }
+
+ /* We now check to see if we are writing file "inplace" */
+--- old/rsync.c
++++ new/rsync.c
+@@ -33,6 +33,7 @@
+ extern int verbose;
+ extern int dry_run;
+ extern int daemon_log_format_has_i;
++extern int preserve_acls;
+ extern int preserve_perms;
+ extern int preserve_executability;
+ extern int preserve_times;
+@@ -101,7 +102,8 @@ void free_sums(struct sum_struct *s)
+
+ /* This is only called when we aren't preserving permissions. Figure out what
+ * the permissions should be and return them merged back into the mode. */
+-mode_t dest_mode(mode_t flist_mode, mode_t cur_mode, int exists)
++mode_t dest_mode(mode_t flist_mode, mode_t cur_mode, int dflt_perms,
++ int exists)
+ {
+ /* If the file already exists, we'll return the local permissions,
+ * possibly tweaked by the --executability option. */
+@@ -116,7 +118,7 @@ mode_t dest_mode(mode_t flist_mode, mode
+ cur_mode |= (cur_mode & 0444) >> 2;
+ }
+ } else
+- cur_mode = flist_mode & ACCESSPERMS & ~orig_umask;
++ cur_mode = flist_mode & ACCESSPERMS & dflt_perms;
+ if (daemon_chmod_modes && !S_ISLNK(flist_mode))
+ cur_mode = tweak_mode(cur_mode, daemon_chmod_modes);
+ return (flist_mode & ~CHMOD_BITS) | (cur_mode & CHMOD_BITS);
+@@ -203,9 +205,21 @@ int set_file_attrs(char *fname, struct f
+ updated = 1;