Estates of Decedents Estates of Decedents Estates of Decedents Dying on or before Feb. 10, 1939 Sec. 812. (c) Property previ- Sec. 812. (c) Property previously taxed. An amount equal to ously taxed.-An amount equal to the value of any property (A) the value of any property (A) forming a part of the gross estate forming a part of the gross estate situated in the United States of any situated in the United States of any person who died within five years person who died within five years prior to the death of the decedent, prior to the death of the decedent, or (B) transferred to the decedent or (B) transferred to the decedent by gift within five years prior to by gift within five years prior to his death, where such property can his death, where such property can be identified as having been re- be identified as having been received by the decedent from the ceived by the decedent from the donor by gift, or from such prior donor by gift, or from such prior decedent by gift, bequest, devise, or decedent by gift, bequest, devise, or inheritance, or which can be identi- inheritance, or which can be identified as having been acquired in ex-fied as having been acquired in exchange for property so received. change for property so received. This deduction shall be allowed This deduction shall be allowed only where a gift tax imposed under chapter 4, or under Title III of the Revenue Act of 1932, 47 Stat. 245, or an estate tax imposed under this subchapter, the Revenué Act of 1926, 44 Stat. 69, or any prior Act of Congress, was finally determined and paid by or on behalf of such donor, or the estate of such prior decedent, as the case may be, and only in the amount finally determined as the value of such property in determining the value of the gift, or the gross estate of such prior decedent, and only to only where a gift tax imposed un- Sec. 407. (b) Amendments to Revenue Act of 1926 relating to property previously taxed.— (1) The second sentence of section 303 (a) (2) of the Revenue Act of 1926, as amended, is amended by striking out "this" following "estate tax imposed under" and inserting in lieu thereof "the Revenue Act of 1932''. (2) The second sentence of section 303 (b) (2) of the Revenue Act of 1926, as amended, is amended by striking out "this" following "estate tax imposed Sec. 303. (a) (2). See p. 496, Eighth Edition. under" and inserting in lieu thereof "the Revenue Act of 1932''. Sec. 407. (c) Effective dates.— (4) The amendments made by subsection (b) shall be applicable with respect to estates of decedents dying after the date of enactment of the Revenue Act of 1932. Estates of Decedents finally determined and paid by or on behalf of such donor, or the estate of such prior decedent, as the case may be, and only in the amount finally determined as the value of such property in determining the value of the gift, or the gross estate of such prior decedent, and only to the extent that the value of such property is included in the decedent's gross estate, and only if in determining the value of the net estate of the prior decedent no deduction was allowable under this subsection, section 861 (a) (2), or the corresponding provisions of any prior Act of Congress, in respect of the property or property given in exchange therefor. behalf of such donor, or the estate the extent that the value of such Where a deduction was allowed of any mortgage or other lien in determining the gift tax, or the estate tax of the prior decedent, which was paid in whole or in part prior to the decedent's death, then the deduction allowable under this paragraph subsection shall be reduced by the amount so paid. The deduction allowable under this subWhere a deduction was allowed Where a deduction was allowed section shall be reduced by an of any mortgage or other lien in of any mortgage or other lien in amount which bears the same ratio determining the gift tax, or the es- determining the gift tax, or the es-to the amounts allowed as deductate tax of the prior decedent, tate tax of the prior decedent, tions under subsections (a), (b) which was paid in whole or in part which was paid in whole or in part and (d) as the amount otherwise prior to the decedent's death, then prior to the decedent's death, then deductible under this subsection the deduction allowable under this the deduction allowable under this bears to the value of the decedent's subsection shall be reduced by the paragraph subsection shall be re- gross estate. Where the property amount so paid. The deduction un- duced by the amount so paid. The referred to in this subsection conder this subsection shall be reduced deduction allowable under this subsists of two or more items the agby an amount which bears the same section shall be reduced by an gregate value of such items shall be ratio to the amounts allowed as de-amount which bears the same ratio used for the purpose of computing ductions under subsections (a) and to the amounts allowed as dedue(d) and the amounts of general tions under subsections (a), (b) claims allowed as deductions under and (d) as the amount otherwise subsection (b) as the amount other- deductible under this subsection wise deductible under this sub-bears to the value of the decedent's section bears to property subject gross estate. The deduction under to general claims. If the property this subsection shall be reduced by includible in the gross estate to an amount which bears the same which the deduction under this sub- ratio to the amounts allowed as desection is attributable is not wholly ductions under subsections (a) and property subject to general (d) and the amounts of general claimsclaims allowed as deductions under subsection (b) as the amount otherwise deductible under this subsection bears to property subject to general claims. If the property includible in the gross estate to which the deduction under this subsection is attributable is not wholly property subject to general claims the deduction. Sec. 812 (c), I. R. C., supra, amended by Sec. 1, H. J. Res. 60, approved March 17, 1941, by adding first italicized language. Sec. 2 of said H. J. Res. 60 makes amendment effective as if such section as amended had been enacted in the I. R. C. on Feb. 10, 1939. Sec. 812 (c), I. R. C., supra, again amended by Sec. 407 (a) (2), R. A. of 1942, by substituting word "subsection" for word "paragraph." Sec. 407 (c) (2) of said Act makes amendment applicable to estates of decedents dying after Feb. 10, 1939. See Sec. 407 (d), R. A. of 1942, regarding overpayments resulting from said amendment. Fn. 30, p. 978. Sec. 812. (c) (1) before the ap- Sec. 812. (c) (1) before the application of the preceding sentence, plication of the preceding sentence, the amount of the deduction under the amount of the deduction under this subsection shall be reduced by this subsection shall be reduced by that part of such amount as the that part of such amount as the value, at the time of the decedent's value, at the time of the decedent's death, of such property (to which death, of such property (to which such deduction is attributable) sub- such deduction is attributable) sub Estates of Decedents the extent that the value of such property is included in the decedent's gross estate, and only if in determining the value of the net estate of the prior decedent no deduction was allowable under this paragraph in respect of the property or property given in exchange therefor. Estates of Decedents the extent that the value of such Where a deduction was allowed Where a deduction was allowed of any mortgage or other lien in of any mortgage or other lien in determining the gift tax, or the es- determining the gift tax, or the estate tax of the prior decedent, tate tax of the prior decedent, which was paid in whole or in part which was paid in whole or in part prior to the decedent's death, then prior to the decedent's death, then the deduction allowable under this the deduction allowable under this paragraph subsection shall be re- paragraph subsection shall be reduced by the amount so paid. The duced by the amount so paid. The deduction allowable under this sub- deduction allowable under this subsection shall be reduced by an section shall be reduced by an amount which bears the same ratio amount which bears the same ratio to the amounts allowed as deduc- to the amounts allowed as deductions under subsections (a), (b) tions under subsections (a), (b) and (d) as the amount otherwise and (d) as the amount otherwise deductible under this subsection deductible under this subsection bears to the value of the decedent's bears to the value of the decedent's gross estate. Where the property referred to in this subsection consists of two or more items the aggregate value of such items shall be used for the purpose of computing the deduction. Sec. 812 (c), I. R. C., supra, amended by Sec. 1, H. J. Res. 60, approved March 17, 1941, by adding first italicized language. Sec. 2 of said H. J. Res. 60 makes amendment effective if as such section as amended had been enacted in the I. R. C. on Feb. 10, 1939. Sec. 812 (c), I. R. C., supra, again amended by Sec. 407 (a) (2), R. A. of 1942, by substituting word "subsection" for word "paragraph." Sec. 407 (c) (2) of said Act makes amendment applicable to estates of decedents dying after Feb. 10, 1939. See Sec. 407 (d), R. A. of 1942, regarding overpayments resulting from said amendment in fn. 30, p. 978. gross estate. Where the property referred to in this subsection con- Sec. 812 (c), I. R. C., supra, amended by Sec. 1, H. J. Res. 60, approved March 17, 1941, by adding first italicized language. Sec. 2 of said H. J. Res. 60 makes amendment effective as if such section as amended had been enacted in the I. R. C. on Feb. 10, 1939. Sec. 812 (c), I. R. C., supra, again amended by Sec. 407 (a) (2), R. A. of 1942, by substituting word "subsection" for word "paragraph." Sec. 407 (c) (2) of said Act makes amendment applicable to estates of decedents dying after Feb. 10, 1939. See Sec. 407 (d), R. A. of 1942, regarding overpayments resulting from said amendment. Fn. 30, p. 978. Estates of Decedents Dying on or before Feb. 10, 1939 ject to claims but not to general ject to claims but not to general Sec. 812. (c) (2) in the applica- Sec. 812. (c) (2) in the application of the preceding sentence in tion of the preceding sentence in reducing the balance, if any, of reducing the balance, if any, of such such deduction, "the amount other-deduction, "the amount otherwise wise deductible under this subsec-deductible under this subsection" tion" shall be only that part of such amount otherwise deductible (determined without regard to clause (1) of this paragraph) as the value, at the time of the decedent's death, of such property (to which such deduction is attributable) subject to general claims is of the value, at the time of the decedent's death, of such property. shall be only that part of such For the purposes of the two pre- For the purposes of the two pre- Sec. 812 (c), I. R. C., supra, amended by Sec. 407 (a) and Sec. 405 (b), R. A. of 1942, to read as above. For Sec. 812 (c), I. R. C., before amendment, and effective dates of amendments, see 1942 column. See Sec. 407 (d), R. A. of 1942, regarding overpayments resulting from said amendment. Fn. 30, p. 978. more items the aggregate value of The first paragraph of Sec. The first sentence of the of said Act makes amendment Estates of Decedents |