Act of 1924. actually expended for the support during the settlement of the estate of those dependent upon the decedent, as are allowed by the laws of the jurisdiction, whether within or without the United States, under which the estate is being administered, but not including any income taxes upon income received after the death of the decedent, or any estate, succession, legacy, or inheritance taxes; (2) An amount equal to the value of any property (A) forming a part of the gross estate situated in the United States of any person who died within five years prior to the death of the decedent, or (B) transferred to the decedent by gift within five years prior to his death, where such property can be identified as having been received by the decedent from such donor by gift or from such prior decedent by gift, bequest, devise, or inheritance, or which can be identified as having been acquired in exchange for property so received. This deduction shall be allowed only where a gift tax or an estate tax under this or any prior act of Congress was paid by or on behalf of the donor or the estate of such prior decedent as the case may be, and only in the amount of the value placed by the Commissioner on 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 not deducted under paragraph (1) or (3) of this subdivision; (3) The amount of all bequests, legacies, devises, or transfers, except bona fide sales for a fair consideration in money or money's worth, in contemplation of or intended to take effect in possession or enjoyment at or after the decedent's death, to or for the use of the United States, any State, Territory, any political subdivision thereof, or the District of Columbia, for exclusively public purposes, or to or for the use fer or inheritance taxes paid to the State of New York are not deductible from the estate of decedent. Title Guarantee and Trust Co. et al v. Edwards (Col.), (D. C., S. D. N. Y. 1922) 290 Fed. 617. Writ of error dismissed for want of jurisdiction. Id., (1924) U. S. * * * * 434 (d) Under the Act of 1916 the widow's dower, homestead or year's support allowed by the Tennessee and Arkansas state laws, if deemed part of the decedent's gross estate I would be in any event charges against the estate * and * be deducted from the value of the gross estate under the express provisions" of Section 203 (a) (1) of said Act. Randolph et al. v. Craig (Col.), (D. C., M. D. Tenn. 1920) 267 Fed. 993. 434 (e) Where a testator in New York devised to his widow certain property in lieu of dower and the rule of the state courts was that the value of the dower right could not be deducted from the devise Act of 1921. diction, whether within or without the United States, under which the estate is being administered, but not including any income taxes upon income received after the death of the decedent, or any estate, succession, legacy, or inheritance taxes; (2) An amount equal to the value of any property forming a part of the gross estate situated in the United States of any person who died within five years prior to the death of the decedent where such property can be identified as having been received by the decedent from such prior decedent by gift, bequest, devise, or inheritance, or which can be identified as having been acquired in exchange for property so received: Provided, That this deduction shall be allowed only where an estate tax under this or any prior Act of Congress was paid by or on behalf of the estate of such prior decedent, and only in the amount of the value placed by the Commissioner on such property in determining the value of 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 not deducted under paragraphs (1) or (3) of subdivision (a) of this section. This deduction shall be made in case of the estates of all decedents who have died since September 8, 1916; (3) The amount of all bequests, legacies, devises, or transfers, except bona fide sales for a fair consideration in money or money's worth, in contemplation of or intended to take effect in possession or enjoyment at or after the decedent's death, to or for the use of the United States, any State, Territory, any political subdivision thereof, or the District of Columbia, for exclusively public purposes, or to or for or bequest in lieu of dower for the purpose of the state transfer tax, the value of such dower right was not deductible from the gross estate under the Act of 1916, where the testator devised property to his widow in lieu of dower. Title Guarantee and Trust Co. et al. v. Edwards (Col.), (D. C., S. D. N. Y. 1922) 290 Fed. 617. Writ of Error dismissed for want of jurisdiction. Id., (1924) U. S. 434 (f) In view of the fact that "the widow does not receive either her homestead, dower or year's support in succession to her husband or by transfer from him, but takes them under the statutory provisions vesting these rights in her independently of her hus band and adversely to his estate, the property assigned to her as dower, homestead and year's support, not being transferred to her from her husband, is not a part of his estate upon which tax is imposed" by the Act of 1916. Randolph et al. v. Craig (Col.), (D. C., M. D. Tenn. 1920) 267 Fed. 993. Act of 1919. Act of 1916. death of the decedent, or any estate, succession, legacy, or inheritance taxes; (2) An amount equal to the value at the time of the decedent's death of any property, real, personal, or mixed, which can be identified as having been received by the decedent as a share in the estate of any person who died within five years prior to the death of the decedent, or which can be identified as having been acquired by the decedent in exchange for property so received, if an estate tax under the Revenue Act of 1917 or under this Act was collected from such estate, and if such property is included in the decedent's gross estate; (3) The amount of all bequests, legacies, devises, or gifts, to or for the use of the United States, any State, Territory, any political subdivision thereof, or the District of Columbia, for exclusively public purposes, or to or for the use of any corporation organized and operated exclusively for religious, charitable,435 scientific, literary, or educational purposes, including the encouragement of art and the prevention of 434 (g) The Maryland collateral inheritance tax, following the Pennsylvania law, is a tax on the decedent's estate, and not on the legacy or inheritance; hence, it is deductible in computing the estate tax under the Act of 1916, as amended by the Act of 1917. Miles (Col.) v. Curley, et al., (C. C. A., Fourth Cir. 1923) 291 Fed. 761, affirming Curley v. Tait (Col.), (D. C., D. Md. 1921) 276 Fed. 845. 434 (h) The New York transfer tax was deductible in determining the net estate under the Act of 1916, as a charge against the estate, allowed by the laws of the jurisdiction under which the estate was being administered. Sayre v. Brewster (Col.), (D. C., N. D. N. Y. 1920) 268 Fed. 553. 435 (a) Where a testator makes certain specific legacies and devises the residue to charitable institutions, the residue of which is deductible from the gross estate under the Act of 1919, and the law of the state where made is that the residuary legatees and not the specific legatees shall bear the estate tax, such estate tax is payable by the residuary legatees notwithstanding the fact that they are charitable institutions and the residue which they are to receive will be diminished by the amount of the tax. Y. M. C. A. of Columbus, Ohio et al. v. Davis, (1924) 264 U. S. 47. 435 (b) A testator made certain specific bequests and bequeathed the residue of his estate to an exempt charitable organization. Under the laws of the state, the estate tax imposed by the Act of 1919 was payable from the residue. The residue before and not after deduction of the estate tax was the proper amount of the exemption, for the purpose of determining the net estate. To deduct the net residue after deduction of the estate tax would in effect add the tax to the net estate and result in a tax on a tax. Edwards (Ex-Col.) v. Slocum, (1924) 264 U. S. 61, affirming Id., (C. C. A., Second Cir. 1923) 287 Fed. 651. Act of 1924. of any corporation organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes, including the encouragement of art and the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private stockholder or individual, or 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 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. If the tax imposed by section 301,436 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; and (4) An exemption of $50,000. SEC. 303. (b) In the case of a nonresident, 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) That proportion of the deductions specified in paragraph (1) of subdivision (a) of this section which the value of such part bears to the value of his entire gross estate, wherever situated, but in no case shall the amount so deducted exceed 10 per centum of the value of that part of his gross estate which at the time of his death is situated in the United States; (2) An amount equal to the value of any property (A) forming a part of the gross estate situated in the United States of any person who died within five years prior to the death of the decedent, or (B) transferred to the decedent by gift within five years prior to his death, where such property can be identified as having been received by the decedent from such donor by gift or from such prior decedent by gift, bequest, devise, or inheritance, or which can be identified as having been acquired in exchange for property so received. This deduction shall be allowed only where a gift tax or an estate tax under this or any prior act of Congress was paid by or on behalf of the donor or the estate of such prior decedent as the case may be, and only in the amount of the value 436 Sec. 301, p. 344. Act of 1921. the use of any corporation organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes, including the encouragement of art and the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private stockholder or individual, or to a trustee or trustees exclusively for such religious, charitable, scientific, literary, or educational purposes. This deduction shall be made in case of the estates of all decedents who have died since December 31, 1917; and (4) An exemption of $50,000; SEC. 403. (b) In the case of a nonresident, 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) That proportion of the deductions specified in paragraph (1) of subdivision (a) of this section which the value of such part bears to the value of his entire gross estate, wherever situated, but in no case shall the amount so deducted exceed 10 per centum of the value of that part of his gross estate which at the time of his death is situated in the United States; (2) An amount equal to the value of any property forming a part of the gross estate situated in the United States of any person who died within five years prior to the death of the decedent where such property can be identified as having been received by the decedent from such prior decedent by gift, bequest, devise, or inheritance, or which can be identified as having been acquired in exchange for property so received: Provided, That this deduction shall be allowed only where an estate tax under this or any prior Act of Congress was paid by or on behalf of the estate of such prior decedent, and only in the amount of the value placed by the Commissioner on such property in determining the value of the gross estate of such prior decedent, and only to the extent that the Act of 1919. cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private stockholder or individual, or to a trustee or trustees exclusively for such religious, charitable, scientific, literary, or educational purposes. This deduction shall be made in case of the estates of all decedents who have died since December 31, 1917; and Act of 1916. (4) An exemption of $50,000; SEC. 403. (b) In the case of a nonresident, 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) That proportion of the deductions specified in paragraph (1) of subdivision (a) of this section which the value of such part bears to the value of his entire gross estate, wherever situated, but in no case shall the amount so deducted exceed 10 per centum of the value of that part of his gross estate which at the time of his death is situated in the United States; (2) An amount equal to the value at the time of the decedent's death of any property, real, personal, or mixed, which can be identified as having been received by the decedent as a share in the estate of any person who died within five years prior to the death of the decedent, or which can be identified as having been acquired by the decedent in exchange for property so received, if an estate tax under the Revenue Act of 1917 or under this Act was collected from such estate, and if such property is included in that part of the decedent's gross estate which at the time of his death is situated in the United States; and (2) An exemption of $50,000; SEC. 203. (b) [1] In the case of a nonresident, 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 that proportion of the deductions specified in paragraph (1) of subdivision (a) of this section which the value of such part bears to the value of his entire gross estate, wherever situated. Act of 1924. placed by the Commissioner on 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 that part of the decedent's gross estate which at the time of his death is situated in the United States and not deducted under paragraph (1) or (3) of this subdivision; and (3) The amount of all bequests, legacies, devises, or transfers, except bona fide sales for a fair consideration, in money or money's worth, in contemplation of or intended to take effect in possession or enjoyment at or after the decedent's death, to or for the use of the United States, any State, Territory, any political subdivision thereof, or the District of Columbia, for exclusively public purposes, or 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 cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private stockholder or individual, or 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. If the tax imposed by section 301,437 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. SEC. 303. (c) No deduction shall be allowed in the case of a nonresident unless the executor includes in the return required to be filed under section 304438 the value at the time of his death of that part of the gross estate of the nonresident not situated in the United States. SEC. 303. (d) For the purpose of Part I of this title, stock in a domestic corporation owned and held by a nonresident decedent shall be deemed property within the United States, and any property of which the decedent has made 437 Sec. 301, p. 344. Act of 1921. value of such property is included in that part of the decedent's gross estate which at the time of his death is situated in the United States and not deducted under paragraphs (1) or (3) of subdivision (b) of this section. This deduction shall be made in case of the estates of all decedents who have died since September 8, 1916; and SEC. 403. (b) (3) [1] The amount of all bequests, legacies, devises, or transfers, except bona fide sales for a fair consideration, in money, or money's worth, in contemplation of or intended to take effect in possession or enjoyment at or after the decedent's death, to or for the use of the United States, any State, Territory, any political subdivision thereof, or the District of Columbia, for exclusively public purposes, or 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 cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private stockholder or individual, or to a trustee or trustees exclusively for such religious, charitable, scientific, literary, or educational purposes within the United States. This deduction shall be made in case of the estates of all decedents who have died since December 31, 1917. SEC. 403. (b) (3) [2] No deduction shall be allowed in the case of a nonresident unless the executor includes in the return required to be filed under section 404439 the value at the time of his death of that part of the gross estate of the nonresident not situated in the United States. SEC. 403. (b) (3) [3] For the purpose of this title stock in a domestic corporation owned and held by a nonresident decedent shall be deemed property within the United States, and any property of which the decedent has made 438 Sec. 304, p. 362. |