United States Code

1976-Subsec. (a). Pub. L. 94-455, § 2009(b)(4)(E), substituted "subsections (b) and (c)" for "subsections (b), (c), and (d)".

Subsec. (c)(1). Pub. L. 94-455, § 2002(a), designated existing provisions as subpar. (A), substituted provisions that the aggregate amount of the deductions allowed under this section (computed without regard to this subsection) shall not exceed the greater of $250,000 or 50 percent of the value of the adjusted gross estate as defined in par. (2) for provisions that the aggregate amount of the deductions allowed under this section (computed without regard to this subsection) shall not exceed 50 percent of the value of the adjusted gross estate as defined in par. (2), and added subpars. (B) and (C).

Subsec. (c)(2)(B). Pub. L. 94-455, § 1902(a)(12)(A), struck out "Territory," following "State," in the provisions preceding cl. (i).

Subsec. (d). Pub. L. 94-455, § 2009(b)(4)(D), redesignated subsec. (e) as (d). Former subsec. (d), which related to disclaimers by the surviving spouse or by other persons was struck out.

Subsec. (e). Pub. L. 94-455, § 2009(b)(4)(D), redesignated subsec. (e) as (d).

1966-Subsec. (d)(2). Pub. L. 89-621 provided that if the disclaimer is made by the person before the date prescribed for the filing of the estate tax return and if the person does not accept the interest before making the disclaimer, the interest shall, for purposes of this section, be considered as passing from the decedent to the surviving spouse.

EFFECTIVE DATE OF 1983 AMENDMENT

Amendment by Pub. L. 97-448 effective, except as otherwise provided, as if it had been included in the provision of the Economic Recovery Tax Act of 1981, Pub. L. 97-34, to which such amendment relates, see section 109 of Pub. L. 97-448, set out as a note under section 1 of this title.

EFFECTIVE DATE OF 1981 Amendment

Section 403(e) of Pub. L. 97-34 as amended by Pub. L. 97-448, title I, § 104(a)(10), Jan. 12, 1983, 96 Stat. 2381, provided that:

"(1) Except as otherwise provided in this subsection, the amendments made by this section [enacting sections 2044 and 2207A of this title, amending sections 691, 2012, 2035, 2040, 2045, 2046, 2056, 2519, 2523, 2602, 6019 of this title and repealing sections 2515 and 2515A of this title] shall apply to the estates of decedents dying after December 31, 1981.

"(2) The amendments made by paragraphs (1), (2), and (3)(A) of subsection (b) [amending sections 2523 and 6019 of this title], subparagraphs (B) and (C) of subsection (c)(3) [amending section 6019 of this title and repealing sections 2515 and 2515A of this title], and paragraphs (2) and (3)(B) of subsection (d), and paragraph (4)(A) of subsection (d) (to the extent related to the tax imposed by chapter 12 of the Internal Revenue Code of 1954) [enacting sections 2207A and 2519 of this title and amending section 2523 of this title] shall apply to gifts made after December 31, 1981.

(3) If

**(A) the decedent dies after December 31, 1981,

"(B) by reason of the death of the decedent property passes from the decedent or is acquired from the decedent under a will executed before the date which is 30 days after the date of the enactment of this Act (Aug. 13, 1981), or a trust created before such date, which contains a formula expressly providing that the spouse is to receive the maximum amount of property qualifying for the marital deduction allowable by Federal law,

"(C) the formula referred to in subparagraph (B) was not amended to refer specifically to an unlimited marital deduction at any time after the date which is 30 days after the date of enactment of this Act (Aug. 13, 1981), and before the death of the decedent, and

"(D) the State does not enact a statute applicable to such estate which construes this type of formula as referring to the marital deduction allowable by Federal law as amended by subsection (a), then the amendment made by subsection (a) shall not apply to the estate of such decedent."

EFFECTIVE DATE OF 1978 AMENDMENT

Section 702(g)(3) of Pub. L. 95-600 provided that: "The amendment made by this subsection [amending this section] shall apply to the estates of decedents dying after December 31, 1976."

EFFECTIVE DATE OF 1976 AMENDMENT

Section 2002(d)(1) of Pub. L. 94-455 provided that: "(1)(A) Except as provided in subparagraph (B), the amendment made by subsection (a) [amending subsec. (c)(1) of this section] shall apply with respect to the estates of decedents dying after December 31, 1976. "(B) If

"(i) the decedent dies after December 31, 1976, and before January 1, 1979,

"(ii) by reason of the death of the decedent property passes from the decedent or is acquired from the decedent under a will executed before January 1, 1977, or a trust created before such date, which contains a formula expressly providing that the spouse is to receive the maximum amount of property qualifying for the marital deduction allowable by Federal law,

"(iii) the formula referred to in clause (ii) was not amended at any time after December 31, 1976, and before the death of the decedent, and

"(iv) the State does not enact a statute applicable to such estate which construes this type of formula as referring to the marital deduction allowable by Federal law as amended by subsection (a), then the amendment made by subsection (a) shall not apply to the estate of such decedent."

Amendment of subsecs. (a), (d), and (e) by section 2009(b)(4)(D), (E) of Pub. L. 94-455 applicable with respect to transfers creating an interest in the person disclaiming made after Dec. 31, 1976, see section 2009(e)(2) of Pub. L. 94-455, set out as an Effective Date note under section 2518 of this title.

EFFECTIVE DATE OF 1966 AMENDMENT

Section 1(b) of Pub. L. 89-621 provided that: "The amendment made by subsection (a) [amending subsec. (d)(2) of this section] shall apply with respect to estates of decedents dying on or after the date of the enactment of this Act [Oct. 4, 1966]."

DISCLAIMER OF INTEREST ARISING FROM ESTATES OF PERSONS DYING BEFORE OCT. 4, 1966, HAVING ESTATE TAX RETURN FILING DATE ON OR AFTER JAN. 1, 1965

Section 1(c) of Pub. L. 89-621 provided that in the case of a decedent dying before Oct. 4, 1966, for which the date prescribed for filing estate tax return was on or after Jan. 1, 1965, and as a result of a disclaimer, the surviving spouse became entitled to receive such interest, then such interest was to be considered as having passed from the decedent to the surviving spouse under certain conditions, with a limit on the amount of deductions allowed.

CROSS REFERENCES

Alternate valuation, see section 2032 of this title. Credits against tax, see sections 2012, 2013, 2014 of this title.

Liability of life insurance beneficiaries, see section 2206 of this title.

Liability of recipient of property over which decedent had power of appointment, see section 2207 of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2012, 2013, 2014, 2032, 2044, 2206, 2207, 2519, 2523 of this title.

[§ 2057. Repealed. Pub. L. 97-34, title IV, § 427(a), Aug. 13, 1981, 95 Stat. 318]

Section, added Pub. L. 94-455, title XX, § 2007(a), Oct. 4, 1976, 90 Stat. 1890, and amended Pub. L. 95-600, title VII, § 702(7)(1), (2), Nov. 6, 1978, 92 Stat. 2934, 2935, related to bequests, etc., to certain minor children.

The tax imposed by this section shall be the amount equal to the excess (if any) of—

(1) a tentative tax computed in accordance with the rate schedule set forth in subsection (d) on the sum of—

(A) the amount of the taxable estate, and (B) the amount of the adjusted taxable gifts, over

(2) a tentative tax computed in accordance with the rate schedule set forth in subsection (d) on the amount of the adjusted taxable gifts.

(1) Adjusted taxable gifts defined

For purposes of this section, the term "adjusted taxable gifts" means the total amount of the taxable gifts (within the meaning of section 2503 as modified by section 2511) made by the decedent after December 31, 1976, other than gifts which are includible in the gross estate of the decedent.

(2) Adjustment for certain gift tax

For purposes of this section, the rules of section 2001(d) shall apply.

(d) Rate schedule

If the amount with respect to which the tentative tax to be computed is: Not over $100,000. ...... Over $100,000 but not over $500,000.

The tentative tax is: 6% of such amount.

$6,000, plus 12% of excess over $100,000.

Over $500,000 but not $54,000, plus 18% of excess over $1,000,000. over $500,000.

Over $1,000,000 but not $144,000, plus 24% of excess over $2,000,000. over $1,000,000. Over 2,000,000...

$384,000, plus 30% of excess over $2,000,000.

(Aug. 16, 1954, ch. 736, 68A Stat. 397; Nov. 13, 1966, Pub. L. 89-809, title I, § 108(a), 80 Stat. 1571; Oct. 4, 1976, Pub. L. 94-455, title XX, § 2001(c)(1)(D), 90 Stat. 1850.)

AMENDMENTS

1976-Pub. L. 94-455 redesignated existing provisions as (a) to (d) and, as redesignated, added provisions for adjustments for taxable gifts, revised the tax rate schedule, and struck out provisions relating to property held by Alien Property Custodian.

1966-Subsec. (a). Pub. L. 89-809 substituted the table to be used in computing the tax imposed on the transfer of the taxable estate, determined as provided in section 2106, of every decedent nonresident not a citizen of the United States for provisions sending the taxpayer to the table in section 2001 for the computation of the tax imposed.

EFFECTIVE DATE OF 1976 AMENDMENT

Amendment by Pub. L. 94-455 applicable to the estates of decedents dying after Dec. 31, 1976, see section 2001(d)(1) of Pub. L. 94-455, set out as a note under section 2001 of this title.

EFFECTIVE DATE OF 1966 AmendmeNT

Section 108(i) of Pub. L. 89-809 provided that: "The amendments made by this section [amending subsec. (a) of this section and sections 2102, 2104, 2105, 2106, and 6018 of this title and adding sections 2107 and 2108 of this title] shall apply with respect to estates of decedents dying after the date of the enactment of this Act [Nov. 13, 1966]."

CROSS REFERENCES

Credits against tax, see sections 2011, 2013 to 2015 of this title.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 691, 2011, 2013, 2014, 2015, 2102, 2103, 2106, 2108 of this title.

§ 2102. Credits against tax (a) In general

The tax imposed by section 2101 shall be credited with the amounts determined in accordance with sections 2011 to 2013, inclusive (relating to State death taxes, gift tax, and tax on prior transfers), subject to the special limitation provided in subsection (b).

(b) Special limitation

The maximum credit allowed under section 2011 against the tax imposed by section 2101 for State death taxes paid shall be an amount which bears the same ratio to the credit com

puted as provided in section 2011(b) as the value of the property, as determined for purposes of this chapter, upon which State death taxes were paid and which is included in the gross estate under section 2103 bears to the value of the total gross estate under section 2103. For purposes of this subsection, the term "State death taxes" means the taxes described in section 2011(a).

(1) In general

A credit of $3,600 shall be allowed against the tax imposed by section 2101.

(2) Residents of possessions of the United States

In the case of a decedent who is considered to be a "nonresident not a citizen of the United States" under section 2209, the credit under this subsection shall be the greater of(A) $3,600, or

(B) that proportion of $15,075 which the value of that part of the decedent's gross estate which at the time of his death is situated in the United States bears to the value of his entire gross estate wherever situated. (3) Phase-in of paragraph (2)(B) amount

In the case of a decedent dying before 1981, paragraph (2)(B) shall be applied

(A) in the case of a decedent dying during 1977, by substituting "$8,480" for "$15,075", (B) in the case of a decedent dying during 1978, by substituting "$10,080" for "$15,075",

(D) in the case of a decedent dying during 1980, by substituting "$13,388" for "$15,075".

(4) Limitation based on amount of tax

The credit allowed under this subsection shall not exceed the amount of the tax imposed by section 2101.

(5) Application of other credits

For purposes of subsection (a), sections 2011 to 2013, inclusive, shall be applied as if the credit allowed under this subsection were allowed under section 2010.

(Aug. 16, 1954, ch. 736, 68A Stat. 397; Nov. 13, 1966, Pub. L. 89-809, title I, § 108(b), 80 Stat. 1572; Oct. 4, 1976, Pub. L. 94-455, title XX, § 2001(c)(1)(E)(i), 90 Stat. 1851.)

AMENDMENTS

1976-Subsec. (c). Pub. L. 94-455 added subsec. (c). 1966-Pub. L. 89-809 redesignated existing provisions as subsec. (a), inserted therein reference to the special limitation provided in subsec. (b), and added subsec. (b).

EFFECTIVE DATE OF 1976 AMENDMENT

Amendment by Pub. L. 94-455 applicable to the estates of decedents dying after Dec. 31, 1976, see section 2001(d)(1) of Pub. L. 94-455, set out as a note under section 2001 of this title.

EFFECTIVE DATE OF 1966 AMENDMENT Amendment by Pub. L. 89-809 applicable with respect to estates of decedents dying after Nov. 13, 1966,

see section 108(i) of Pub. L. 89-809, set out as a note under section 2101 of this title.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 2107, 2108 of this title.

§ 2103. Definition of gross estate

For the purpose of the tax imposed by section 2101, the value of the gross estate of every decedent nonresident not a citizen of the United States shall be that part of his gross estate (determined as provided in section 2031) which at the time of his death is situated in the United States.

(Aug. 16, 1954, ch. 736, 68A Stat. 397.)

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 2102, 2106, 2107 of this title.

§ 2104. Property within the United States (a) Stock in corporation

For purposes of this subchapter shares of stock owned and held by a nonresident not a citizen of the United States shall be deemed property within the United States only if issued by a domestic corporation.

(b) Revocable transfers and transfers within 3 years of death

For purposes of this subchapter, any property of which the decedent has made a transfer, by trust or otherwise, within the meaning of sections 2035 to 2038, inclusive, shall be deemed to be situated in the United States, if so situated either at the time of the transfer or at the time of the decedent's death.

For purposes of this subchapter, debt obligations of

(1) a United States person, or

(2) the United States, a State or any political subdivision thereof, or the District of Columbia,

owned and held by a nonresident not a citizen of the United States shall be deemed property within the United States. With respect to estates of decedents dying after December 31, 1969, deposits with a domestic branch of a foreign corporation, if such branch is engaged in the commercial banking business, shall, for purposes of this subchapter, be deemed property within the United States. This subsection shall not apply to a debt obligation to which section 2105(b) applies or to a debt obligation of a domestic corporation if any interest on such obligation, were such interest received by the decedent at the time of his death, would be treated by reason of section 861(a)(1)(B), section 861(a)(1)(G), or section 861(a)(1)(H) as income from sources without the United States.

(Aug. 16, 1954, ch. 736, 68A Stat. 397; Nov. 13, 1966, Pub. L. 89-809, title I, § 108(c), 80 Stat. 1572; Dec. 30, 1969, Pub. L. 91-172, title IV, § 435(b), 83 Stat. 625; Apr. 10, 1973, Pub. L. 93-17, § 3(a), 87 Stat. 12; Jan. 3, 1975, Pub. L. 93-625, 9(b), 88 Stat. 2116; Oct. 4, 1976, Pub.

L. 94-455, title XX, § 2001(c)(1)(L), 90 Stat. 1853.)

AMENDMENTS

1976-Subsec. (b). Pub. L. 94-455 substituted "and transfers within 3 years of death" for "and transfers in contemplation of death" following "Revocable

transfers".

1975-Subsec. (c). Pub. L. 93-625 inserted in last sentence reference to section 861(a)(1)(H) of this title.

1973-Subsec. (c). Pub. L. 93-17 made subsec. (c) inapplicable to debt obligations where interest on such obligations is treated as income from sources without the United States by reason of section 861(a)(1)(G) of this title.

1969-Subsec. (c). Pub. L. 91-172 substituted "December 31, 1969" for "December 31, 1972" in provisions deeming deposit with a domestic branch of a foreign corporation if such branch is engaged in the commercial banking business to be property within the United States.

1966-Subsec. (c). Pub. L. 89-809 added subsec. (c).

EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94-455 not applicable to transfers made before Jan. 1, 1977, see section 2001(d)(1) of Pub. L. 94-455, set out as a note under section 2001 of this title.

EFFECTIVE DATE OF 1975 Amendment Amendment by Pub. L. 93-625 applicable with respect to estates of decedents dying after Jan. 3, 1975, see section 9(c) of Pub. L. 93-625, set out as a note under section 861 of this title.

EFFECTIVE Date of 1973 AMENDMENT

Section 3(a)(2) of Pub. L. 93-17 provided that: "The amendment made by paragraph (1) [amending subsec. (c) of this section] shall apply with respect to estates of decedents dying after December 31, 1972, except that in the case of the assumption of a debt obligation of a foreign corporation which is treated as issued under section 4912(c)(2) after December 31, 1972, and before January 1, 1974, the amendment made by paragraph (1) [amending subsec. (c) of this section] shall apply with respect to estates of decedents dying after December 31, 1973."

EFFECTIVE DATE OF 1966 AMENDMENT Amendment by Pub. L. 89-809 applicable with respect to estates of decedents dying after Nov. 13, 1966, see section 108(i) of Pub. L. 89-809, set out as a note under section 2101 of this title.

SHORT TITLE OF 1973 AMENDMENT

Section 1(a) of Pub. L. 93-17 provided that: "This Act [enacting sections 4922 and 6689 of this title, amending sections 2104(c), 4911(d), 4912(b)(3), 4914(c) (1), (8), (9), 4915(a)(1)(A), 4916(a)(2), (e), 4918(e)(7) to (9), 4919(a), 4920(a)(3A), (b)(2), (d)(2), (3), (e), 6611(h), (i) of this title, and enacting provisions set out as notes under section 2104 of this title] may be cited as the 'Interest Equalization Tax Extension Act of 1973'."

§ 2105. Property without the United States

(a) Proceeds of life insurance

For purposes of this subchapter, the amount receivable as insurance on the life of a nonresident not a citizen of the United States shall not be deemed property within the United States. (b) Certain bank deposits, etc.

For purposes of this subchapter

(1) amounts described in section 861(c) if any interest thereon, were such interest re

ceived by the decedent at the time of his death, would be treated by reason of section 861(a)(1)(A) as income from sources without the United States, and

(2) deposits with a foreign branch of a domestic corporation or domestic partnership, if such branch is engaged in the commercial banking business,

shall not be deemed property within the United States.

For purposes of this subchapter, works of art owned by a nonresident not a citizen of the United States shall not be deemed property within the United States if such works of art are

(1) imported into the United States solely for exhibition purposes,

(2) loaned for such purposes, to a public gallery or museum, no part of the net earnings of which inures to the benefit of any private stockholder or individual, and

(3) at the time of the death of the owner, on exhibition, or en route to or from exhibition, in such a public gallery or museum. (Aug. 16, 1954, ch. 736, 68A Stat. 397; Nov. 13, 1966, Pub. L. 89-809, title I, § 108(d), 80 Stat. 1572.)

AMENDMENTS

1966-Subsec. (b). Pub. L. 89-809 substituted amounts described in section 861(c) if any interest thereon, were such interest received by the decedent at the time of his death, would be treated by reason of section 861(a)(1)(A) as income from sources without the United States, and deposits with a foreign branch of a domestic corporation or domestic partnership, if such branch is engaged in the commercial banking business for moneys deposited with any person carrying on the banking business by or for a nonresident not a citizen of the United States who was not engaged in business in the United States at the time of his death as the property not to be deemed property within the United States for purposes of this subchapter.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 2104 of this title.

§ 2106. Taxable estate

(a) Definition of taxable estate

For purposes of the tax imposed by section 2101, the value of the taxable estate of every decedent nonresident not a citizen of the United States shall be determined by deducting from the value of that part of his gross estate which at the time of his death is situated in the United States

(1) Expenses, losses, indebtedness, and taxes

That proportion of the deductions specified in sections 2053 and 2054 (other than the deductions described in the following sentence) which the value of such part bears to the

value of his entire gross estate, wherever situated. Any deduction allowable under section 2053 in the case of a claim against the estate which was founded on a promise or agreement but was not contracted for an adequate and full consideration in money or money's worth shall be allowable under this paragraph to the extent that it would be allowable as a deduction under paragraph (2) if such promise or agreement constituted a bequest.

(2) Transfers for public, charitable, and religious

uses

(A) In general

The amount of all bequests, legacies, devises, or transfers (including the interest which falls into any such bequest, legacy, devise, or transfer as a result of an irrevocable disclaimer of a bequest, legacy, devise, transfer, or power, if the disclaimer is made before the date prescribed for the filing of the estate tax return)—

(i) to or for the use of the United States, any State, any political subdivision thereof, or the District of Columbia, for exclusively public purposes;

(ii) to or for the use of any domestic corporation organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes, including the encouragement of art and the prevention of curelty to children or animals, no part of the net earnings of which inures to the benefit of any private stockholder or individual, which is not disqualified for tax exemption under section 501(c)(3) by reason of attempting to influence legislation, and which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of any candidate for public office; or

(iii) to a trustee or trustees, or a fraternal society, order, or association operating under the lodge system, but only if such contributions or gifts are to be used within the United States by such trustee or trustees, or by such fraternal society, order, or association, exclusively for religious, charitable, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals, such trust, fraternal society, order, or association would not be disqualified for tax exemption under section 501(c)(3) by reason of attempting to influence legislation, and such trustee or trustees, or such fraternal society, order, or association, does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of any candidate for public office; (B) Powers of appointment

Property includible in the decedent's gross estate under section 2041 (relating to powers of appointment) received by a donee described in this paragraph shall, for purposes of this paragraph, be considered a bequest of such decedent.

If the tax imposed by section 2101, or any estate, succession, legacy, or inheritance taxes, are, either by the terms of the will, by the law of the jurisdiction under which the estate is administered, or by the law of the jurisdiction imposing the particular tax, payable in whole or in part out of the bequests, legacies, or devises otherwise deductible under this paragraph, then the amount deductible under this paragraph shall be the amount of such bequests, legacies, or devises reduced by the amount of such taxes.

(D) Limitation on deduction

The amount of the deduction under this paragraph for any transfer shall not exceed the value of the transferred property required to be included in the gross estate.

(E) Disallowance of deductions in certain cases

The provisions of section 2055(e) shall be applied in the determination of the amount allowable as a deduction under this paragraph.

(F) Cross references

(i) For option as to time for valuation for purposes of deduction under this section, see section 2032.

(ii) For exemption of certain bequests for the benefit of the United States and for rules of construction for certain bequests, see section 2055(f).

(iii) For treatment of gifts and bequests to or for the use of Indian tribal governments (or their subdivisions), see section 7871.

(b) Condition of allowance of deductions

No deduction shall be allowed under paragraphs (1) and (2) of subsection (a) in the case of a nonresident not a citizen of the United States unless the executor includes in the return required to be filed under section 6018 the value at the time of his death of that part of the gross estate of such nonresident not situated in the United States.

(Aug. 16, 1954, ch. 736, 68A Stat. 398; Sept. 2, 1958, Pub. L. 85-866, title I, § 30(d), 72 Stat. 1631; Sept. 14, 1960, Pub. L. 86-779, § 4(c), 74 Stat. 1000; Nov. 13, 1966, Pub. L. 89-809, title I, § 108(e), 80 Stat. 1572; Dec. 30, 1969, Pub. L. 91-172, title II, § 201(d)(2), (4)(B), 83 Stat. 561; Oct. 4, 1976, Pub. L. 94-455, title XIII, § 1307(d)(1)(B)(iii), (C), title XIX, § 1902(a)(5), (12)(A), title XX, § 2001(c)(1)(F), 90 Stat. 1727, 1805, 1852; Jan. 14, 1983, Pub. L. 97-473, title II, § 202(b)(6), 96 Stat. 2610.)

AMENDMENTS

1983-Subsec. (a)(2)(F). Pub. L. 97-473 substituted "(i)" and "(ii)" for "(1)" and "(2)", respectively, and added cl. (iii).

1976-Subsec. (a)(2)(A)(i). Pub. L. 94-455, § 1902 (a)(12)(A), struck out "Territory" following "any State". Subsec. 94-455,

(a)(2)(A)(ii).

Pub.

§ 1307(d)(1)(B)(iii), substituted "which is not disqualified for tax exemption under section 501(c)(3) by reason of attempting to influence legislation" for "no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation" following "stockholder or individual”.

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United States Code, 11. sējums