-CITE-
26 USC CHAPTER 11 - ESTATE TAX 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle B - Estate and Gift Taxes
CHAPTER 11 - ESTATE TAX
-HEAD-
CHAPTER 11 - ESTATE TAX
-MISC1-
Subchapter Sec.(!1)
A. Estates of citizens or residents 2001
B. Estates of nonresidents not citizens 2101
C. Miscellaneous 2201
-SECREF-
CHAPTER REFERRED TO IN OTHER SECTIONS
This chapter is referred to in sections 529, 646, 664, 667, 1014,
1040, 2519, 2612, 2624, 2642, 2651, 2652, 2661, 2663, 2701, 6103,
6161, 6163, 6212, 6314, 6324, 6324A, 6501, 6601, 6662, 6871, 6901,
6905, 7269, 7404, 7463, 7481, 7517, 7851, 7872 of this title.
-FOOTNOTE-
(!1) Section numbers editorially supplied.
-End-
-CITE-
26 USC Subchapter A - Estates of Citizens or Residents 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle B - Estate and Gift Taxes
CHAPTER 11 - ESTATE TAX
Subchapter A - Estates of Citizens or Residents
-HEAD-
SUBCHAPTER A - ESTATES OF CITIZENS OR RESIDENTS
-MISC1-
Part
I. Tax imposed.
II. Credits against tax.
III. Gross estate.
IV. Taxable estate.
-End-
-CITE-
26 USC PART I - TAX IMPOSED 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle B - Estate and Gift Taxes
CHAPTER 11 - ESTATE TAX
Subchapter A - Estates of Citizens or Residents
PART I - TAX IMPOSED
-HEAD-
PART I - TAX IMPOSED
-MISC1-
Sec.
2001. Imposition and rate of tax.
2002. Liability for payment.
AMENDMENTS
1976 - Pub. L. 94-455, title XX, Sec. 2001(c)(1)(N)(i), Oct. 4,
1976, 90 Stat. 1853, substituted "Imposition and rate of tax" for
"Rate of tax" in item 2001.
-End-
-CITE-
26 USC Sec. 2001 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle B - Estate and Gift Taxes
CHAPTER 11 - ESTATE TAX
Subchapter A - Estates of Citizens or Residents
PART I - TAX IMPOSED
-HEAD-
Sec. 2001. Imposition and rate of tax
-STATUTE-
(a) Imposition
A tax is hereby imposed on the transfer of the taxable estate of
every decedent who is a citizen or resident of the United States.
(b) Computation of tax
The tax imposed by this section shall be the amount equal to the
excess (if any) of -
(1) a tentative tax computed under subsection (c) on the sum of
-
(A) the amount of the taxable estate, and
(B) the amount of the adjusted taxable gifts, over
(2) the aggregate amount of tax which would have been payable
under chapter 12 with respect to gifts made by the decedent after
December 31, 1976, if the provisions of subsection (c) (as in
effect at the decedent's death) had been applicable at the time
of such gifts.
For purposes of paragraph (1)(B), the term "adjusted taxable gifts"
means the total amount of the taxable gifts (within the meaning of
section 2503) made by the decedent after December 31, 1976, other
than gifts which are includible in the gross estate of the
decedent.
(c) Rate schedule
(1) In general
If the amount with The tentative tax is:
respect to which the
tentative tax to be
computed is:
--------------------------------------------------------------------
Not over $10,000 18 percent of such amount.
Over $10,000 but not over $1,800, plus 20 percent of the
$20,000 excess of such amount over $10,000.
Over $20,000 but not over $3,800, plus 22 percent of the
$40,000 excess of such amount over $20,000.
Over $40,000 but not over $8,200 plus 24 percent of the
$60,000 excess of such amount over $40,000.
Over $60,000 but not over $13,000, plus 26 percent of the
$80,000 excess of such amount over $60,000.
Over $80,000 but not over $18,200, plus 28 percent of the
$100,000 excess of such amount over $80,000.
Over $100,000 but not over $23,800, plus 30 percent of the
$150,000 excess of such amount over $100,000.
Over $150,000 but not over $38,800, plus 32 percent of the
$250,000 excess of such amount over $150,000.
Over $250,000 but not over $70,800, plus 34 percent of the
$500,000 excess of such amount over $250,000.
Over $500,000 but not over $155,800, plus 37 percent of the
$750,000 excess of such amount over $500,000.
Over $750,000 but not over $248,300, plus 39 percent of the
$1,000,000 excess of such amount over $750,000.
Over $1,000,000 but not $345,800, plus 41 percent of the
over $1,250,000 excess of such amount over
$1,000,000.
Over $1,250,000 but not $448,300, plus 43 percent of the
over $1,500,000 excess of such amount over
$1,250,000.
Over $1,500,000 but not $555,800, plus 45 percent of the
over $2,000,000 excess of such amount over
$1,500,000.
Over $2,000,000 but not $780,800, plus 49 percent of the
over $2,500,000 excess of such amount over
$2,000,000.
Over $2,500,000 $1,025,800, plus 50% of the excess
over $2,500,000.
--------------------------------------------------------------------
(2) Phasedown of maximum rate of tax
(A) In general
In the case of estates of decedents dying, and gifts made, in
calendar years after 2002 and before 2010, the tentative tax
under this subsection shall be determined by using a table
prescribed by the Secretary (in lieu of using the table
contained in paragraph (1)) which is the same as such table;
except that -
(i) the maximum rate of tax for any calendar year shall be
determined in the table under subparagraph (B), and
(ii) the brackets and the amounts setting forth the tax
shall be adjusted to the extent necessary to reflect the
adjustments under subparagraph (A).
(B) Maximum rate
The maximum
In calendar year: rate is:
2003 49 percent
2004 48 percent
2005 47 percent
2006 46 percent
2007, 2008, and 2009 45 percent.
(d) Adjustment for gift tax paid by spouse
For purposes of subsection (b)(2), if -
(1) the decedent was the donor of any gift one-half of which
was considered under section 2513 as made by the decedent's
spouse, and
(2) the amount of such gift is includible in the gross estate
of the decedent,
any tax payable by the spouse under chapter 12 on such gift (as
determined under section 2012(d)) shall be treated as a tax payable
with respect to a gift made by the decedent.
(e) Coordination of sections 2513 and 2035
If -
(1) the decedent's spouse was the donor of any gift one-half of
which was considered under section 2513 as made by the decedent,
and
(2) the amount of such gift is includible in the gross estate
of the decedent's spouse by reason of section 2035,
such gift shall not be included in the adjusted taxable gifts of
the decedent for purposes of subsection (b)(1)(B), and the
aggregate amount determined under subsection (b)(2) shall be
reduced by the amount (if any) determined under subsection (d)
which was treated as a tax payable by the decedent's spouse with
respect to such gift.
(f) Valuation of gifts
(1) In general
If the time has expired under section 6501 within which a tax
may be assessed under chapter 12 (or under corresponding
provisions of prior laws) on -
(A) the transfer of property by gift made during a preceding
calendar period (as defined in section 2502(b)); or
(B) an increase in taxable gifts required under section
2701(d),
the value thereof shall, for purposes of computing the tax under
this chapter, be the value as finally determined for purposes of
chapter 12.
(2) Final determination
For purposes of paragraph (1), a value shall be treated as
finally determined for purposes of chapter 12 if -
(A) the value is shown on a return under such chapter and
such value is not contested by the Secretary before the
expiration of the time referred to in paragraph (1) with
respect to such return;
(B) in a case not described in subparagraph (A), the value is
specified by the Secretary and such value is not timely
contested by the taxpayer; or
(C) the value is determined by a court or pursuant to a
settlement agreement with the Secretary.
For purposes of subparagraph (A), the value of an item shall be
treated as shown on a return if the item is disclosed in the
return, or in a statement attached to the return, in a manner
adequate to apprise the Secretary of the nature of such item.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 373; Pub. L. 94-455, title XX,
Sec. 2001(a)(1), Oct. 4, 1976, 90 Stat. 1846; Pub. L. 95-600, title
VII, Sec. 702(h)(1), Nov. 6, 1978, 92 Stat. 2930; Pub. L. 97-34,
title IV, Sec. 402(a)-(c), Aug. 13, 1981, 95 Stat. 300; Pub. L.
98-369, div. A, title I, Sec. 21(a), July 18, 1984, 98 Stat. 506;
Pub. L. 100-203, title X, Sec. 10401(a)-(b)(2)(A), Dec. 22, 1987,
101 Stat. 1330-430, 1330-431; Pub. L. 103-66, title XIII, Sec.
13208(a)-(b)(2), Aug. 10, 1993, 107 Stat. 469; Pub. L. 105-34,
title V, Secs. 501(a)(1)(D), 506(a), Aug. 5, 1997, 111 Stat. 845,
855; Pub. L. 105-206, title VI, Sec. 6007(e)(2)(B), July 22, 1998,
112 Stat. 810; Pub. L. 105-277, div. J, title IV, Sec. 4003(c),
Oct. 21, 1998, 112 Stat. 2681-909; Pub. L. 107-16, title V, Sec.
511(a)-(c), June 7, 2001, 115 Stat. 70.)
-STATAMEND-
AMENDMENT OF SECTION
For termination of amendment by section 901 of Pub. L. 107-16,
see Effective and Termination Dates of 2001 Amendment note below.
-MISC1-
AMENDMENTS
2001 - Subsec. (c)(1). Pub. L. 107-16, Secs. 511(a), 901,
temporarily substituted in table provisions that if the amount on
which the tax is computed is over $2,500,000, then the tentative
tax is $1,025,800, plus 50% of the excess over $2,500,000 for
provisions that if the amount on which the tax is computed is over
$2,500,000 but not over $3,000,000, then the tentative tax is
$1,025,800, plus 53% of the excess over $2,500,000, and if the
amount on which the tax is computed is over $3,000,000, then the
tentative tax is $1,290,800, plus 55% of the excess over
$3,000,000. See Effective and Termination Dates of 2001 Amendment
note below.
Subsec. (c)(2). Pub. L. 107-16, Secs. 511(c), 901, temporarily
added par. (2). See Effective and Termination Dates of 2001
Amendment note below.
Pub. L. 107-16, Secs. 511(b), 901, temporarily struck out heading
and text of par. (2). Text read as follows: "The tentative tax
determined under paragraph (1) shall be increased by an amount
equal to 5 percent of so much of the amount (with respect to which
the tentative tax is to be computed) as exceeds $10,000,000 but
does not exceed the amount at which the average tax rate under this
section is 55 percent." See Effective and Termination Dates of 2001
Amendment note below.
1998 - Subsec. (f). Pub. L. 105-206, Sec. 6007(e)(2)(B),
reenacted heading without change and amended text generally. Prior
to amendment, text read as follows: "If -
"(1) the time has expired within which a tax may be assessed
under chapter 12 (or under corresponding provisions of prior
laws) on the transfer of property by gift made during a preceding
calendar period (as defined in section 2502(b)), and
"(2) the value of such gift is shown on the return for such
preceding calendar period or is disclosed in such return, or in a
statement attached to the return, in a manner adequate to apprise
the Secretary of the nature of such gift,
the value of such gift shall, for purposes of computing the tax
under this chapter, be the value of such gift as finally determined
for purposes of chapter 12."
Subsec. (f)(2). Pub. L. 105-277 inserted concluding provisions.
1997 - Subsec. (c)(2). Pub. L. 105-34, Sec. 501(a)(1)(D),
substituted "the amount at which the average tax rate under this
section is 55 percent" for "$21,040,000".
Subsec. (f). Pub. L. 105-34, Sec. 506(a), added subsec. (f).
1993 - Subsec. (c)(1). Pub. L. 103-66, Sec. 13208(a), substituted
in table provisions that if the amount on which the tax is computed
is over $2,500,000 but not over $3,000,000, then the tentative tax
is $1,025,800, plus 53% of the excess over $2,500,000 and if the
amount on which the tax is computed is over $3,000,000, then the
tentative tax is $1,290,800, plus 55% of the excess over $3,000,000
for provisions that if the amount on which the tax is computed is
over $2,500,000, then the tentative tax is $1,025,800, plus 50% of
the excess over $2,500,000.
Subsec. (c)(2), (3). Pub. L. 103-66, Sec. 13208(b)(1), (2),
redesignated par. (3) as (2), struck out "($18,340,000 in the case
of decedents dying, and gifts made, after 1992)" after "exceed
$21,040,000", and struck out former par. (2) which related to the
rates of tax on estates under this section for the years 1982 to
1992.
1987 - Subsec. (b)(1). Pub. L. 100-203, Sec. 10401(b)(2)(A)(i),
substituted "under subsection (c)" for "in accordance with the rate
schedule set forth in subsection (c)".
Subsec. (b)(2). Pub. L. 100-203, Sec. 10401(b)(2)(A)(ii),
substituted "the provisions of subsec. (c)" for "the rate schedule
set forth in subsection (c)".
Subsec. (c)(2)(A). Pub. L. 100-203, Sec. 10401(a)(1), substituted
"1993" for "1988".
Subsec. (c)(2)(D). Pub. L. 100-203, Sec. 10401(a)(2), (3),
substituted in heading "After 1983 and before 1993" for "For 1984,
1985, 1986, or 1987", and in text "after 1983 and before 1993" for
"in 1984, 1985, 1986, or 1987".
Subsec. (c)(3). Pub. L. 100-203, Sec. 10401(b)(1), added par.
(3).
1984 - Subsec. (c)(2)(A), (D). Pub. L. 98-369 substituted "1988"
for "1985" in subpar. (A) and substituted "1984, 1985, 1986, or
1987" for "1984" in heading and text of subpar. (D).
1981 - Subsec. (b)(2). Pub. L. 97-34, Sec. 402(c), inserted
"which would have been" before "payable" and ", if the rate
schedule set forth in subsection (c) (as in effect at the
decedent's death) had been applicable at the time of such gifts"
after "December 31, 1976,".
Subsec. (c). Pub. L. 97-34, Sec. 402(a), (b)(1), designated
existing provision as par. (1), inserted heading "In general" and
substituted in table provision that if the amount computed is over
$2,500,000 then the tentative tax is $1,025,800 plus 50% of the
excess over $2,500,000 for provisions that if the amount computed
is over $2,500,000 but not over $3,000,000, then the tentative tax
is $1,025,800 plus 53% of the excess over $2,500,000, over
$3,000,000 but not over $3,500,000 then the tentative tax is
$1,290,000 plus 57% of the excess over $3,000,000, over $3,500,000
but not over $4,000,000 then the tentative tax is $1,575,800 plus
61% of the excess over $3,500,000, over $4,000,000 but not over
$4,500,000 then the tentative tax is $1,880,800 plus 65% of the
excess over $4,000,000, over $4,500,000 but not over $5,000,000
then the tentative tax is $2,205,800 plus 69% of the excess over
$4,500,000, over $5,000,000 then the tentative tax is $2,550,800
plus 70% of the excess over $5,000,000, and added par. (2).
1978 - Subsec. (e). Pub. L. 95-600 added subsec. (e).
1976 - Pub. L. 94-455 substituted provisions setting a unified
rate schedule for estate and gift taxes ranging from 18 percent for
the first $10,000 in taxable transfers to 70 percent of taxable
transfers in excess of $5,000,000, with provision for adjustments
for gift taxes paid by spouses, for provisions setting an estate
tax of 3 percent of the first $5,000 of the taxable estate to 77
percent of the taxable estate in excess of $10,000,000.
EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
Pub. L. 107-16, title V, Sec. 511(f)(1), (2), June 7, 2001, 115
Stat. 71, provided that:
"(1) Subsections (a) and (b). - The amendments made by
subsections (a) and (b) [amending this section] shall apply to
estates of decedents dying, and gifts made, after December 31,
2001.
"(2) Subsection (c). - The amendment made by subsection (c)
[amending this section] shall apply to estates of decedents dying,
and gifts made, after December 31, 2002."
Amendment by Pub. L. 107-16 inapplicable to estates of decedents
dying, gifts made, or generation skipping transfers, after Dec. 31,
2010, and the Internal Revenue Code of 1986 to be applied and
administered to such estates, gifts, and transfers as if such
amendment had never been enacted, see section 901 of Pub. L.
107-16, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1998 AMENDMENTS
Amendment by Pub. L. 105-277 effective as if included in the
provision of the Taxpayer Relief Act of 1997, Pub. L. 105-34, to
which such amendment relates, see section 4003(l) of Pub. L.
105-277, set out as a note under section 86 of this title.
Amendment by Pub. L. 105-206 effective, except as otherwise
provided, as if included in the provisions of the Taxpayer Relief
Act of 1997, Pub. L. 105-34, to which such amendment relates, see
section 6024 of Pub. L. 105-206, set out as a note under section 1
of this title.
EFFECTIVE DATE OF 1997 AMENDMENT
Section 501(f) of Pub. L. 105-34, as amended by Pub. L. 105-206,
title VI, Sec. 6007(a)(2), July 22, 1998, 112 Stat. 807, provided
that: "The amendments made by this section [amending this section
and sections 2010, 2032A, 2102, 2503, 2505, 2631, 6018, and 6601 of
this title] (other than the amendment made by subsection (d)
[amending section 2631 of this title]) shall apply to the estates
of decedents dying, and gifts made, after December 31, 1997."
Section 506(e)(1) of Pub. L. 105-34, as amended by Pub. L.
105-206, title VI, Sec. 6007(e)(1), July 22, 1998, 112 Stat. 809,
provided that: "The amendments made by subsections (a), (c), and
(d) [enacting section 7477 of this title and amending this section
and section 2504 of this title] shall apply to gifts made after the
date of the enactment of this Act [Aug. 5, 1997]."
EFFECTIVE DATE OF 1993 AMENDMENT
Section 13208(c) of Pub. L. 103-66 provided that: "The amendments
made by this section [amending this section and section 2101 of
this title] shall apply in the case of decedents dying and gifts
made after December 31, 1992."
EFFECTIVE DATE OF 1987 AMENDMENT
Section 10401(c) of Pub. L. 100-203 provided that: "The
amendments made by this section [amending this section and section
2502 of this title] shall apply in the case of decedents dying, and
gifts made, after December 31, 1987."
EFFECTIVE DATE OF 1984 AMENDMENT
Section 21(b) of Pub. L. 98-369 provided that: "The amendments
made by subsection (a) [amending this section] shall apply to the
estates of decedents dying after, and gifts made after, December
31, 1983."
EFFECTIVE DATE OF 1981 AMENDMENT
Section 402(d) of Pub. L. 97-34 provided that: "The amendments
made by this section [amending this section] shall apply to estates
of decedents dying after, and gifts made after, December 31, 1981."
EFFECTIVE DATE OF 1978 AMENDMENT
Section 702(h)(3) of Pub. L. 95-600 provided that: "The
amendments made by this subsection [amending this section and
section 2602 of this title] shall apply with respect to the estates
of decedents dying after December 31, 1976, except that such
amendments shall not apply to transfers made before January 1,
1977."
EFFECTIVE DATE OF 1976 AMENDMENT
Section 2001(d)(1) of Pub. L. 94-455 provided that: "The
amendments made by subsections (a) [enacting section 2010, amending
this section and sections 2012 and 2035, and repealing section 2052
of this title] and (c)(1) [amending sections 2011, 2012, 2013,
2014, 2038, 2044, 2101, 2102, 2104, 2106, 2107, 2206, 2207, and
6018 of this title] shall apply to the estates of decedents dying
after December 31, 1976; except that the amendments made by
subsection (a)(5) [amending section 2035 of this title] and
subparagraphs (K) and (L) of subsection (c)(1) [amending sections
2038 and 2104 of this title] shall not apply to transfers made
before January 1, 1977."
SHORT TITLE
Pub. L. 91-614, Sec. 1(a), Dec. 31, 1970, 84 Stat. 1836, provided
that: "This Act [enacting section 6905 of this title, section 1232a
of Title 15, Commerce and Trade, and section 1033 of former Title
31, Money and Finance, amending sections 56, 1015, 1223, 2012,
2032, 2055, 2204, 2501, 2502, 2503, 2504, 2512, 2513, 2515, 2521,
2522, 2523, 4061, 4063, 4216, 4251, 4491, 6019, 6040, 6075, 6091,
6161, 6212, 6214, 6324, 6412, 6416, 6501, 6504, and 6512 of this
title, and enacting provisions set out as notes under sections 56,
2032, 2204, 2501, 4063, 4216, 4251, 4491, and 6905 of this title]
may be cited as the 'Excise, Estate, and Gift Tax Adjustment Act of
1970'."
CLARIFICATION OF TREATMENT OF CERTAIN EXEMPTIONS FOR PURPOSES OF
FEDERAL ESTATE AND GIFT TAXES
Section 641 of Pub. L. 98-369, as amended by Pub. L. 99-514, Sec.
2, Oct. 22, 1986, 100 Stat. 2095, provided that:
"(a) General Rule. - Nothing in any provision of law exempting
any property (or interest therein) from taxation shall exempt the
transfer of such property (or interest therein) from Federal
estate, gift, and generation-skipping transfer taxes. In the case
of any provision of law enacted after the date of the enactment of
this Act [July 18, 1984], such provision shall not be treated as
exempting the transfer of property from Federal estate, gift, and
generation-skipping transfer taxes unless it refers to the
appropriate provisions of the Internal Revenue Code of 1986
[formerly I.R.C. 1954].
"(b) Effective Date. -
"(1) In general. - The provisions of subsection (a) shall apply
to the estates of decedents dying, gifts made, and transfers made
on or after June 19, 1984.
"(2) Treatment of certain transfers treated as taxable. - The
provisions of subsection (a) shall also apply in the case of any
transfer of property (or interest therein) if at any time there
was filed an estate or gift tax return showing such transfer as
subject to Federal estate or gift tax.
"(3) No inference. - No inference shall arise from paragraphs
(1) and (2) that any transfer of property (or interest therein)
before June 19, 1984, is exempt from Federal estate and gift
taxes."
REPORTS WITH TRANSFERS OF PUBLIC HOUSING BONDS
Section 642 of Pub. L. 98-369 provided that:
"(a) General Rule. - With respect to transfers of public housing
bonds occurring after December 31, 1983, and before June 19, 1984,
the taxpayer shall report the date and amount of such transfer and
such other information as the Secretary of the Treasury or his
delegate shall prescribe by regulations to allow the determination
of the tax and interest due if it is ultimately determined that
such transfers are subject to estate, gift, or generation-skipping
tax.
"(b) Penalty for Failure to Report. - Any taxpayer failing to
provide the information required by subsection (a) shall be liable
for a penalty equal to 25 percent of the excess of (1) the estate,
gift, or generation-skipping tax that is payable assuming that such
transfers are subject to tax, over (2) the tax payable assuming
such transfers are not so subject."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 163, 691, 1016, 2010,
2011, 2012, 2013, 2014, 2015, 2031, 2032A, 2051, 2053, 2054, 2055,
2056, 2056A, 2057, 2058, 2101, 2107, 2201, 2502, 2504, 2641, 2642,
2661, 6018, 6019, 6166, 6601, 7422, 7481 of this title.
-End-
-CITE-
26 USC Sec. 2002 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle B - Estate and Gift Taxes
CHAPTER 11 - ESTATE TAX
Subchapter A - Estates of Citizens or Residents
PART I - TAX IMPOSED
-HEAD-
Sec. 2002. Liability for payment
-STATUTE-
The tax imposed by this chapter shall be paid by the executor.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 374; Pub. L. 98-369, div. A,
title V, Sec. 544(b)(1), July 18, 1984, 98 Stat. 894; Pub. L.
101-239, title VII, Sec. 7304(b)(2)(A), Dec. 19, 1989, 103 Stat.
2353.)
-MISC1-
AMENDMENTS
1989 - Pub. L. 101-239 substituted "The" for "Except as provided
in section 2210, the".
1984 - Pub. L. 98-369 inserted exception phrase.
EFFECTIVE DATE OF 1989 AMENDMENT
Section 7304(b)(3) of Pub. L. 101-239 provided that: "The
amendments made by this subsection [amending this section and
section 6018 of this title and repealing section 2210 of this
title] shall apply to estates of decedents dying after July 12,
1989."
EFFECTIVE DATE OF 1984 AMENDMENT
Section 544(d) of Pub. L. 98-369 provided that: "The amendments
made by this section [enacting section 2210 of this title and
amending this section and sections 6018 and 6166 of this title]
shall apply to those estates of decedents which are required to
file returns on a date (including any extensions) after the date of
enactment of this Act [July 18, 1984]."
-End-
-CITE-
26 USC PART II - CREDITS AGAINST TAX 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle B - Estate and Gift Taxes
CHAPTER 11 - ESTATE TAX
Subchapter A - Estates of Citizens or Residents
PART II - CREDITS AGAINST TAX
-HEAD-
PART II - CREDITS AGAINST TAX
-MISC1-
Sec.
2010. Unified credit against estate tax.
2011. Credit for State death taxes.
2012. Credit for gift tax.
2013. Credit for tax on prior transfers.
2014. Credit for foreign death taxes.
2015. Credit for death taxes on remainders.
2016. Recovery of taxes claimed as credit.
AMENDMENTS
1976 - Pub. L. 94-455, title XX, Sec. 2001(c)(1)(N)(ii), Oct. 4,
1976, 90 Stat. 1853, added item 2010.
-End-
-CITE-
26 USC Sec. 2010 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle B - Estate and Gift Taxes
CHAPTER 11 - ESTATE TAX
Subchapter A - Estates of Citizens or Residents
PART II - CREDITS AGAINST TAX
-HEAD-
Sec. 2010. Unified credit against estate tax
-STATUTE-
(a) General rule
A credit of the applicable credit amount shall be allowed to the
estate of every decedent against the tax imposed by section 2001.
(b) Adjustment to credit for certain gifts made before 1977
The amount of the credit allowable under subsection (a) shall be
reduced by an amount equal to 20 percent of the aggregate amount
allowed as a specific exemption under section 2521 (as in effect
before its repeal by the Tax Reform Act of 1976) with respect to
gifts made by the decedent after September 8, 1976.
(c) Applicable credit amount
For purposes of this section, the applicable credit amount is the
amount of the tentative tax which would be determined under the
rate schedule set forth in section 2001(c) if the amount with
respect to which such tentative tax is to be computed were the
applicable exclusion amount determined in accordance with the
following table:
In the case of estates of decedents The applicable
dying during: exclusion amount
is:
2002 and 2003 $1,000,000
2004 and 2005 $1,500,000
2006, 2007, and 2008 $2,000,000
2009 $3,500,000.
(d) Limitation based on amount of tax
The amount of the credit allowed by subsection (a) shall not
exceed the amount of the tax imposed by section 2001.
-SOURCE-
(Added Pub. L. 94-455, title XX, Sec. 2001(a)(2), Oct. 4, 1976, 90
Stat. 1848; amended Pub. L. 97-34, title IV, Sec. 401(a)(1),
(2)(A), Aug. 13, 1981, 95 Stat. 299; Pub. L. 101-508, title XI,
Sec. 11801(a)(39), (c)(19)(A), Nov. 5, 1990, 104 Stat. 1388-521,
1388-528; Pub. L. 105-34, title V, Sec. 501(a)(1)(A), (B), Aug. 5,
1997, 111 Stat. 845; Pub. L. 107-16, title V, Sec. 521(a), June 7,
2001, 115 Stat. 71.)
-STATAMEND-
AMENDMENT OF SECTION
For termination of amendment by section 901 of Pub. L. 107-16,
see Effective and Termination Dates of 2001 Amendment note below.
-REFTEXT-
REFERENCES IN TEXT
The Tax Reform Act of 1976, referred to in subsec. (b), is Pub.
L. 94-455, Oct. 4, 1976, 90 Stat. 1520, as amended. For complete
classification of this Act to the Code, see Tables.
Section 2521 of this title, referred to in subsec. (b), was
repealed by section 2001(b)(3) of Pub. L. 94-455, applicable to
gifts made after Dec. 31, 1976.
-MISC1-
AMENDMENTS
2001 - Subsec. (c). Pub. L. 107-16, Secs. 521(a), 901, in table,
temporarily substituted provision that in the case of estates of
decedents dying during the years 2002 and 2003, the years 2004 and
2005, the years 2006, 2007, and 2008, and the year 2009, the
applicable exclusion amount is $1,000,000, $1,500,000, $2,000,000,
and $3,500,000, respectively, for provision that in the case of
decedents dying, and gifts made, during the year 1998, the year
1999, the years 2000 and 2001, the years 2002 and 2003, the year
2004, the year 2005, and the year 2006 or thereafter, the
applicable exclusion amount is $625,000, $650,000, $675,000,
$700,000, $850,000, $950,000, and $1,000,000, respectively. See
Effective and Termination Dates of 2001 Amendment note below.
1997 - Subsec. (a). Pub. L. 105-34, Sec. 501(a)(1)(A),
substituted "the applicable credit amount" for "$192,800".
Subsecs. (c), (d). Pub. L. 105-34, Sec. 501(a)(1)(B), added
subsec. (c) and redesignated former subsec. (c) as (d).
1990 - Subsecs. (b) to (d). Pub. L. 101-508 redesignated subsecs.
(c) and (d) as (b) and (c), respectively, and struck out former
subsec. (b) which provided for a phase-in of the unified credit
against estate tax.
1981 - Subsec. (a). Pub. L. 97-34, Sec. 401(a)(1), substituted
"$192,800" for "$47,000".
Subsec. (b). Pub. L. 97-34, Sec. 401(a)(2)(A), struck out
"$47,000" before "credit" from heading and in text substituted in
subsec. (a) substitutions for "$192,800" amounts of "$62,800",
"$79,300", "$96,300", "$121,800", and "$155,800" in the case of
decedents dying in 1982, 1983, 1984, 1985, and 1986, respectively,
for subsec. (a) substitutions for "$47,000" amounts of "$30,000",
"$34,000", "$38,000", and "$42,500" in the case of decedents dying
in 1977, 1978, 1979, and 1980, respectively.
EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
Pub. L. 107-16, title V, Sec. 521(e), June 7, 2001, 115 Stat. 72,
provided that:
"(1) In general. - Except as provided in paragraphs (2) and (3),
the amendments made by this section [amending this section and
sections 2057, 2505, and 2631 of this title] shall apply to estates
of decedents dying, and gifts made, after December 31, 2001.
"(2) Subsection (b)(2). - The amendments made by subsection
(b)(2) [amending section 2505 of this title] shall apply to gifts
made after December 31, 2009.
"(3) Subsections (c) and (d). - The amendments made by
subsections (c) and (d) [amending sections 2057 and 2631 of this
title] shall apply to estates of decedents dying, and
generation-skipping transfers, after December 31, 2003."
Amendment by Pub. L. 107-16 inapplicable to estates of decedents
dying, gifts made, or generation skipping transfers, after Dec. 31,
2010, and the Internal Revenue Code of 1986 to be applied and
administered to such estates, gifts, and transfers as if such
amendment had never been enacted, see section 901 of Pub. L.
107-16, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1997 AMENDMENT
Amendment by Pub. L. 105-34 applicable to estates of decedents
dying, and gifts made, after Dec. 31, 1997, see section 501(f) of
Pub. L. 105-34, set out as a note under section 2001 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Section 401(c)(1) of Pub. L. 97-34 provided that: "The amendments
made by subsection (a) [amending this section and section 6018 of
this title] shall apply to the estates of decedents dying after
December 31, 1981".
SAVINGS PROVISION
For provisions that nothing in amendment by Pub. L. 101-508 be
construed to affect treatment of certain transactions occurring,
property acquired, or items of income, loss, deduction, or credit
taken into account prior to Nov. 5, 1990, for purposes of
determining liability for tax for periods ending after Nov. 5,
1990, see section 11821(b) of Pub. L. 101-508, set out as a note
under section 29 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 2011, 2012, 2013, 2014,
2056A, 2057, 2102, 2107, 2201, 2505, 2631, 6018, 6601 of this
title.
-End-
-CITE-
26 USC Sec. 2011 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle B - Estate and Gift Taxes
CHAPTER 11 - ESTATE TAX
Subchapter A - Estates of Citizens or Residents
PART II - CREDITS AGAINST TAX
-HEAD-
Sec. 2011. Credit for State death taxes
-STATUTE-
(a) In general
The tax imposed by section 2001 shall be credited with the amount
of any estate, inheritance, legacy, or succession taxes actually
paid to any State or the District of Columbia, in respect of any
property included in the gross estate (not including any such taxes
paid with respect to the estate of a person other than the
decedent).
(b) Amount of credit
(1) In general
Except as provided in paragraph (2), the credit allowed by this
section shall not exceed the appropriate amount stated in the
following table:
If the adjusted taxable The maximum tax credit
estate is: shall be:
--------------------------------------------------------------------
Not over $90,000 8/10 ths of 1% of the amount by
which the adjusted taxable estate
exceeds $40,000.
Over $90,000 but not over $400 plus 1.6% of the excess over
$140,000 $90,000.
Over $140,000 but not over $1,200 plus 2.4% of the excess over
$240,000 $140,000.
Over $240,000 but not over $3,600 plus 3.2% of the excess over
$440,000 $240,000.
Over $440,000 but not over $10,000 plus 4% of the excess over
$640,000 $440,000.
Over $640,000 but not over $18,000 plus 4.8% of the excess
$840,000 over $640,000.
Over $840,000 but not over $27,600 plus 5.6% of the excess
$1,040,000 over $840,000.
Over $1,040,000 but not $38,800 plus 6.4% of the excess
over $1,540,000 over $1,040,000.
Over $1,540,000 but not $70,800 plus 7.2% of the excess
over $2,040,000 over $1,540,000.
Over $2,040,000 but not $106,800 plus 8% of the excess over
over $2,540,000 $2,040,000.
Over $2,540,000 but not $146,800 plus 8.8% of the excess
over $3,040,000 over $2,540,000
Over $3,040,000 but not $190,800 plus 9.6% of the excess
over $3,540,000 over $3,040,000.
Over $3,540,000 but not $238,800 plus 10.4% of the excess
over $4,040,000 over $3,540,000.
Over $4,040,000 but not $290,800 plus 11.2% of the excess
over $5,040,000 over $4,040,000.
Over $5,040,000 but not $402,800 plus 12% of the excess
over $6,040,000 over $5,040,000.
Over $6,040,000 but not $522,800 plus 12.8% of the excess
over $7,040,000 over $6,040,000.
Over $7,040,000 but not $650,800 plus 13.6% of the excess
over $8,040,000 over $7,040,000.
Over $8,040,000 but not $786,800 plus 14.4% of the excess
over $9,040,000 over $8,040,000.
Over $9,040,000 but not $930,800 plus 15.2% of the excess
over $10,040,000 over $9,040,000.
Over $10,040,000 $1,082,800 plus 16% of the excess
over $10,040,000.
--------------------------------------------------------------------
(2) Reduction of maximum credit
(A) In general
In the case of estates of decedents dying after December 31,
2001, the credit allowed by this section shall not exceed the
applicable percentage of the credit otherwise determined under
paragraph (1).
(B) Applicable percentage
In the case of estates of decedents The applicable
dying during: percentage is:
2002 75 percent
2003 50 percent
2004 25 percent.
(3) Adjusted taxable estate
For purposes of this section, the term "adjusted taxable
estate" means the taxable estate reduced by $60,000.
(c) Period of limitations on credit
The credit allowed by this section shall include only such taxes
as were actually paid and credit therefor claimed within 4 years
after the filing of the return required by section 6018, except
that -
(1) If a petition for redetermination of a deficiency has been
filed with the Tax Court within the time prescribed in section
6213(a), then within such 4-year period or before the expiration
of 60 days after the decision of the Tax Court becomes final.
(2) If, under section 6161 or 6166, an extension of time has
been granted for payment of the tax shown on the return, or of a
deficiency, then within such 4-year period or before the date of
the expiration of the period of the extension.
(3) If a claim for refund or credit of an overpayment of tax
imposed by this chapter has been filed within the time prescribed
in section 6511, then within such 4-year period or before the
expiration of 60 days from the date of mailing by certified mail
or registered mail by the Secretary to the taxpayer of a notice
of the disallowance of any part of such claim, or before the
expiration of 60 days after a decision by any court of competent
jurisdiction becomes final with respect to a timely suit
instituted upon such claim, whichever is later.
Refund based on the credit may (despite the provisions of sections
6511 and 6512) be made if claim therefor is filed within the period
above provided. Any such refund shall be made without interest.
(d) Limitation in cases involving deduction under section 2053(d)
In any case where a deduction is allowed under section 2053(d)
for an estate, succession, legacy, or inheritance tax imposed by a
State or the District of Columbia upon a transfer for public,
charitable, or religious uses described in section 2055 or
2106(a)(2), the allowance of the credit under this section shall be
subject to the following conditions and limitations:
(1) The taxes described in subsection (a) shall not include any
estate, succession, legacy, or inheritance tax for which such
deduction is allowed under section 2053(d).
(2) The credit shall not exceed the lesser of -
(A) the amount stated in subsection (b) on an adjusted
taxable estate determined by allowing such deduction authorized
by section 2053(d), or
(B) that proportion of the amount stated in subsection (b) on
an adjusted taxable estate determined without regard to such
deduction authorized by section 2053(d) as (i) the amount of
the taxes described in subsection (a), as limited by the
provisions of paragraph (1) of this subsection, bears to (ii)
the amount of the taxes described in subsection (a) before
applying the limitation contained in paragraph (1) of this
subsection.
(3) If the amount determined under subparagraph (B) of
paragraph (2) is less than the amount determined under
subparagraph (A) of that paragraph, then for purposes of
subsection (d) such lesser amount shall be the maximum credit
provided by subsection (b).
(e) Limitation based on amount of tax
The credit provided by this section shall not exceed the amount
of the tax imposed by section 2001, reduced by the amount of the
unified credit provided by section 2010.
(f) Termination
This section shall not apply to the estates of decedents dying
after December 31, 2004.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 374; Feb. 20, 1956, ch. 63, Sec.
3, 70 Stat. 24; Pub. L. 85-866, title I, Secs. 65(a), 102(c)(1),
Sept. 2, 1958, 72 Stat. 1657, 1674; Pub. L. 86-175, Sec. 3, Aug.
21, 1959, 73 Stat. 397; Pub. L. 94-455, title XIX, Secs.
1902(a)(12)(B), 1906(b)(13)(A), title XX, Secs. 2001(c)(1)(A),
2004(f)(3), Oct. 4, 1976, 90 Stat. 1806, 1834, 1849, 1872; Pub. L.
97-34, title IV, Sec. 422(e)(2), Aug. 13, 1981, 95 Stat. 316; Pub.
L. 107-16, title V, Secs. 531(a), 532(a), June 7, 2001, 115 Stat.
72, 73; Pub. L. 107-134, title I, Sec. 103(b)(1), Jan. 23, 2002,
115 Stat. 2431.)
-STATAMEND-
AMENDMENT OF SECTION
For termination of amendment by section 901 of Pub. L. 107-16,
see Effective and Termination Dates of 2001 Amendment note below.
-MISC1-
AMENDMENTS
2002 - Subsecs. (d) to (g). Pub. L. 107-134 redesignated subsecs.
(e) to (g) as (d) to (f), respectively, and struck out heading and
text of former subsec. (d). Text read as follows: "The basic estate
tax and the estate tax imposed by the Revenue Act of 1926 shall be
125 percent of the amount determined to be the maximum credit
provided by subsection (b). The additional estate tax shall be the
difference between the tax imposed by section 2001 or 2101 and the
basic estate tax."
2001 - Subsec. (b). Pub. L. 107-16, Secs. 531(a), 901,
temporarily designated existing provisions as pars. (1) and (3),
inserted headings, in par. (1) substituted "Except as provided in
paragraph (2), the credit allowed" for "The credit allowed", and
added par. (2). See Effective and Termination Dates of 2001
Amendment note below.
Subsec. (g). Pub. L. 107-16, Secs. 532(a), 901, temporarily added
subsec. (g). See Effective and Termination Dates of 2001 Amendment
note below.
1981 - Subsec. (c)(2). Pub. L. 97-34 struck out reference to
section 6166A.
1976 - Subsec. (a). Pub. L. 94-455, Sec. 1902(a)(12)(B), struck
out "or Territory" after "State".
Subsec. (b). Pub. L. 94-455, Sec. 2001(c)(1)(A)(i), (ii),
substituted "adjusted taxable estate" for "taxable estate" in two
places in table and inserted provision that, for purposes of this
section, "adjusted taxable estate" means the taxable estate reduced
by $60,000.
Subsec. (c)(2). Pub. L. 94-455, Sec. 2004(f)(3), substituted
"section 6161, 6166, or 6166A" for "section 6161".
Subsec. (c)(3). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out
"or his delegate" after "Secretary".
Subsec. (e). Pub. L. 94-455, Secs. 1902(a)(12)(B),
2001(c)(1)(A)(iii), substituted "adjusted taxable estate" for
"taxable estate" in par. (2) and struck out "or Territory" after
"imposed by a State" in provisions preceding par. (1).
Subsec. (f). Pub. L. 94-455, Sec. 2001(c)(1)(A)(iv), added
subsec. (f).
1959 - Subsec. (e). Pub. L. 86-175 substituted "imposed by a
State or Territory or the District of Columbia upon a transfer" for
"imposed upon a transfer" in introduction, "such deduction" for "a
deduction" in par. (1) and "such deduction" for "the deduction" in
two places in par. (2).
1958 - Subsec. (a). Pub. L. 85-866, Sec. 102(c)(1), struck out
"or any possession of the United States," after "District of
Columbia,".
Subsec. (c)(3). Pub. L. 85-866, Sec. 65(a), added par. (3).
1956 - Subsec. (e). Act Feb. 20, 1956, added subsec. (e).
EFFECTIVE DATE OF 2002 AMENDMENT
Pub. L. 107-134, title I, Sec. 103(d), Jan. 23, 2002, 115 Stat.
2431, provided that:
"(1) Effective date. - The amendments made by this section
[amending this section and sections 2053 and 2201 of this title]
shall apply to estates of decedents -
"(A) dying on or after September 11, 2001; and
"(B) in the case of individuals dying as a result of the April
19, 1995, terrorist attack, dying on or after April 19, 1995.
"(2) Waiver of limitations. - If refund or credit of any
overpayment of tax resulting from the amendments made by this
section is prevented at any time before the close of the 1-year
period beginning on the date of the enactment of this Act [Jan. 23,
2002] by the operation of any law or rule of law (including res
judicata), such refund or credit may nevertheless be made or
allowed if claim therefor is filed before the close of such
period."
EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
Pub. L. 107-16, title V, Sec. 531(b), June 7, 2001, 115 Stat. 73,
provided that: "The amendments made by this subsection [probably
means this section, amending this section] shall apply to estates
of decedents dying after December 31, 2001."
Pub. L. 107-16, title V, Sec. 532(d), June 7, 2001, 115 Stat. 75,
provided that: "The amendments made by this section [enacting
section 2058 of this title and amending this section and sections
2012 to 2016, 2053, 2056A, 2102, 2106, 2107, 2201, 2604, 6511, and
6612 of this title] shall apply to estates of decedents dying, and
generation-skipping transfers, after December 31, 2004."
Amendment by Pub. L. 107-16 inapplicable to estates of decedents
dying, gifts made, or generation skipping transfers, after Dec. 31,
2010, and the Internal Revenue Code of 1986 to be applied and
administered to such estates, gifts, and transfers as if such
amendment had never been enacted, see section 901 of Pub. L.
107-16, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by Pub. L. 97-34 applicable to estates of decedents
dying after Dec. 31, 1981, see section 422(f)(1) of Pub. L. 97-34,
set out as a note under section 6166 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Section 1902(c)(1) of Pub. L. 94-455, as amended by Pub. L.
95-600, title VII, Sec. 703(j)(12), Nov. 6, 1978, 92 Stat. 2942,
provided that: "The amendments made by paragraphs (1) through (8),
and paragraphs (12)(A), (B), and (C), of subsection (a) and by
subsection (b) [amending this section and sections 2012, 2013,
2016, 2038, 2053, 2055, 2056, 2106, 2107, 2108, 2201, 6167, and
6503 of this title, repealing section 2202 of this title, and
enacting provisions set out as a note under section 2201 of this
title] shall apply in the case of estates of decedents dying after
the date of the enactment of this Act [Oct. 4, 1976], and the
amendment made by paragraph (9) of subsection (a) [amending section
2204 of this title] shall apply in the case of estates of decedents
dying after December 31, 1970."
Amendment by section 1902(a)(12)(B) of Pub. L. 94-455 applicable
with respect to gifts made after Dec. 31, 1976, see section
1902(c)(2) of Pub. L. 94-455, set out as a note under section 2501
of this title.
Amendment by section 2001(c)(1)(A) of Pub. L. 94-455 applicable
to 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.
Amendment by section 2004(f)(3) of Pub. L. 94-455 applicable to
estates of decedents dying after Dec. 31, 1976, see section 2004(g)
of Pub. L. 94-455, set out as an Effective Date note under section
6166 of this title.
EFFECTIVE DATE OF 1959 AMENDMENT
Amendment by Pub. L. 86-175 applicable with respect to estates of
decedents dying on or after July 1, 1955, see section 4 of Pub. L.
86-175, set out as a note under section 2053 of this title.
EFFECTIVE DATE OF 1958 AMENDMENT
Section 65(c) of Pub. L. 85-866 provided that: "The amendment
made by subsection (a) [amending this section] shall apply with
respect to estates of decedents dying after August 16, 1954. The
amendment made by subsection (b) [amending this section] shall
apply with respect to estates of decedents dying after February 10,
1939, and on or before August 16, 1954."
Section 102(d) of Pub. L. 85-866 provided that: "The amendments
made by this section (other than by subsection (b)) [enacting
section 2208 of this title and amending this section and sections
2104 and 2053 of this title] shall apply to the estates of
decedents dying after the date of the enactment of this Act [Sept.
2, 1958]. The amendment made by subsection (b) [amending section
2501 of this title] shall apply to gifts made after the date of the
enactment of this Act."
EFFECTIVE DATE OF 1956 AMENDMENT
Amendment by act Feb. 20, 1956, applicable to the estates of all
decedents dying after Dec. 31, 1953, see section 4 of act Feb. 20,
1956, set out as a note under section 2053 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 2012, 2013, 2014, 2015,
2016, 2053, 2056A, 2102, 2106, 2107, 6511, 6612 of this title.
-End-
-CITE-
26 USC Sec. 2012 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle B - Estate and Gift Taxes
CHAPTER 11 - ESTATE TAX
Subchapter A - Estates of Citizens or Residents
PART II - CREDITS AGAINST TAX
-HEAD-
Sec. 2012. Credit for gift tax
-STATUTE-
(a) In general
If a tax on a gift has been paid under chapter 12 (sec. 2501 and
following), or under corresponding provisions of prior laws, and
thereafter on the death of the donor any amount in respect of such
gift is required to be included in the value of the gross estate of
the decedent for purposes of this chapter, then there shall be
credited against the tax imposed by section 2001 the amount of the
tax paid on a gift under chapter 12, or under corresponding
provisions of prior laws, with respect to so much of the property
which constituted the gift as is included in the gross estate,
except that the amount of such credit shall not exceed an amount
which bears the same ratio to the tax imposed by section 2001
(after deducting from such tax the credit for State death taxes
provided by section 2011 and the unified credit provided by section
2010) as the value (at the time of the gift or at the time of the
death, whichever is lower) of so much of the property which
constituted the gift as is included in the gross estate bears to
the value of the entire gross estate reduced by the aggregate
amount of the charitable and marital deductions allowed under
sections 2055, 2056, and 2106(a)(2).
(b) Valuation reductions
In applying, with respect to any gift, the ratio stated in
subsection (a), the value at the time of the gift or at the time of
the death, referred to in such ratio, shall be reduced -
(1) by such amount as will properly reflect the amount of such
gift which was excluded in determining (for purposes of section
2503(a)), or of corresponding provisions of prior laws, the total
amount of gifts made during the calendar quarter (or calendar
year if the gift was made before January 1, 1971) in which the
gift was made;
(2) if a deduction with respect to such gift is allowed under
section 2056(a) (relating to marital deduction), then by the
amount of such value, reduced as provided in paragraph (1); and
(3) if a deduction with respect to such gift is allowed under
sections 2055 or 2106(a)(2) (relating to charitable deduction),
then by the amount of such value, reduced as provided in
paragraph (1) of this subsection.
(c) Where gift considered made one-half by spouse
Where the decedent was the donor of the gift but, under the
provisions of section 2513, or corresponding provisions of prior
laws, the gift was considered as made one-half by his spouse -
(1) the term "the amount of the tax paid on a gift under
chapter 12", as used in subsection (a), includes the amounts paid
with respect to each half of such gift, the amount paid with
respect to each being computed in the manner provided in
subsection (d); and
(2) in applying, with respect to such gift, the ratio stated in
subsection (a), the value at the time of the gift or at the time
of the death, referred to in such ratio, includes such value with
respect to each half of such gift, each such value being reduced
as provided in paragraph (1) of subsection (b).
(d) Computation of amount of gift tax paid
(1) Amount of tax
For purposes of subsection (a), the amount of tax paid on a
gift under chapter 12, or under corresponding provisions of prior
laws, with respect to any gift shall be an amount which bears the
same ratio to the total tax paid for the calendar quarter (or
calendar year if the gift was made before January 1, 1971) in
which the gift was made as the amount of such gift bears to the
total amount of taxable gifts (computed without deduction of the
specific exemption) for such quarter or year.
(2) Amount of gift
For purposes of paragraph (1), the "amount of such gift" shall
be the amount included with respect to such gift in determining
(for the purposes of section 2503(a), or of corresponding
provisions of prior laws) the total amount of gifts made during
such quarter or year, reduced by the amount of any deduction
allowed with respect to such gift under section 2522, or under
corresponding provisions of prior laws (relating to charitable
deduction), or under section 2523 (relating to marital
deduction).
(e) Section inapplicable to gifts made after December 31, 1976
No credit shall be allowed under this section with respect to the
amount of any tax paid under chapter 12 on any gift made after
December 31, 1976.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 375; Pub. L. 91-614, title I,
Sec. 102(d)(2), Dec. 31, 1970, 84 Stat. 1841; Pub. L. 94-455, title
XIX, Sec. 1902(a)(1), title XX, Sec. 2001(a)(3), (c)(1)(B), Oct. 4,
1976, 90 Stat. 1804, 1848, 1850; Pub. L. 97-34, title IV, Sec.
403(a)(2)(A), Aug. 13, 1981, 95 Stat. 301; Pub. L. 107-16, title V,
Sec. 532(c)(1), June 7, 2001, 115 Stat. 73.)
-STATAMEND-
AMENDMENT OF SUBSECTION (A)
Pub. L. 107-16, title V, Sec. 532(c)(1), (d), title IX, Sec. 901,
June 7, 2001, 115 Stat. 73, 75, 150, provided that, applicable to
estates of decedents dying, and generation-skipping transfers,
after Dec. 31, 2004, subsection (a) of this section is temporarily
amended by striking out "the credit for State death taxes provided
by section 2011 and" before "the unified credit". See Effective and
Termination Dates of 2001 Amendment note below.
-MISC1-
AMENDMENTS
1981 - Subsec. (b)(2). Pub. L. 97-34 substituted "the amount of
such value, reduced as provided in paragraph (1)" for "an amount
which bears the same ratio to such value (reduced as provided in
paragraph (1) of this subsection) as the aggregate amount of the
marital deductions allowed under section 2056(a) bears to the
aggregate amount of such marital deductions computed without regard
to subsection (c) thereof".
1976 - Subsec. (a). Pub. L. 94-455, Sec. 2001(c)(1)(B),
substituted "provided by section 2011 and the unified credit
provided by section 2010" for "provided by section 2011".
Subsec. (b). Pub. L. 94-455, Sec. 1902(a)(1)(A), added heading
and substituted a comma for a dash after "deduction)" in pars. (2)
and (3).
Subsec. (c). Pub. L. 94-455, Sec. 1902(a)(1)(B), added heading.
Subsec. (d). Pub. L. 94-455, Sec. 1902(a)(1)(C), (D), added
headings for subsec. (d) and for pars. (1) and (2).
Subsec. (e). Pub. L. 94-455, Sec. 2001(a)(3), added subsec. (e).
1970 - Subsec. (b)(1). Pub. L. 91-614, Sec. 102(d)(2)(A),
substituted "the calendar quarter (or calendar year if the gift was
made before January 1, 1971)" for "the year".
Subsec. (d). Pub. L. 91-614, Sec. 102(d)(2)(B), substituted "such
quarter or year" for "such year" in two places.
Subsec. (d)(1). Pub. L. 91-614, Sec. 102(d)(2)(A), substituted
"the calendar quarter (or calendar year if the gift was made before
January 1, 1971)" for "the year".
EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
Amendment by Pub. L. 107-16 applicable to estates of decedents
dying, and generation-skipping transfers, after Dec. 31, 2004, see
section 532(d) of Pub. L. 107-16, set out as a note under section
2011 of this title.
Amendment by Pub. L. 107-16 inapplicable to estates of decedents
dying, gifts made, or generation skipping transfers, after Dec. 31,
2010, and the Internal Revenue Code of 1986 to be applied and
administered to such estates, gifts, and transfers as if such
amendment had never been enacted, see section 901 of Pub. L.
107-16, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by Pub. L. 97-34 applicable to estates of decedents
dying after Dec. 31, 1981, but inapplicable under certain
conditions under will executed before date which is 30 days after
Aug. 13, 1981, or under trust created by such date, see section
403(e) of Pub. L. 97-34, set out as a note under section 2056 of
this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1902(a)(1) of Pub. L. 94-455 applicable to
estates of decedents dying after Oct. 4, 1976, see section
1902(c)(1) of Pub. L. 94-455, set out as a note under section 2011
of this title.
Amendment by section 2001(a)(3), (c)(1)(B) of Pub. L. 94-455
applicable to 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 1970 AMENDMENT
Amendment by Pub. L. 91-614 applicable with respect to gifts made
after Dec. 31, 1970, see section 102(e) of Pub. L. 91-614, set out
as a note under section 2501 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 2001, 2013, 2014, 2102,
2107 of this title.
-End-
-CITE-
26 USC Sec. 2013 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle B - Estate and Gift Taxes
CHAPTER 11 - ESTATE TAX
Subchapter A - Estates of Citizens or Residents
PART II - CREDITS AGAINST TAX
-HEAD-
Sec. 2013. Credit for tax on prior transfers
-STATUTE-
(a) General rule
The tax imposed by section 2001 shall be credited with all or a
part of the amount of the Federal estate tax paid with respect to
the transfer of property (including property passing as a result of
the exercise or non-exercise of a power of appointment) to the
decedent by or from a person (herein designated as a "transferor")
who died within 10 years before, or within 2 years after, the
decedent's death. If the transferor died within 2 years of the
death of the decedent, the credit shall be the amount determined
under subsections (b) and (c). If the transferor predeceased the
decedent by more than 2 years, the credit shall be the following
percentage of the amount so determined -
(1) 80 percent, if within the third or fourth years preceding
the decedent's death;
(2) 60 percent, if within the fifth or sixth years preceding
the decedent's death;
(3) 40 percent, if within the seventh or eighth years preceding
the decedent's death; and
(4) 20 percent, if within the ninth or tenth years preceding
the decedent's death.
(b) Computation of credit
Subject to the limitation prescribed in subsection (c), the
credit provided by this section shall be an amount which bears the
same ratio to the estate tax paid (adjusted as indicated
hereinafter) with respect to the estate of the transferor as the
value of the property transferred bears to the taxable estate of
the transferor (determined for purposes of the estate tax)
decreased by any death taxes paid with respect to such estate. For
purposes of the preceding sentence, the estate tax paid shall be
the Federal estate tax paid increased by any credits allowed
against such estate tax under section 2012, or corresponding
provisions of prior laws, on account of gift tax, and for any
credits allowed against such estate tax under this section on
account of prior transfers where the transferor acquired property
from a person who died within 10 years before the death of the
decedent.
(c) Limitation on credit
(1) In general
The credit provided in this section shall not exceed the amount
by which -
(A) the estate tax imposed by section 2001 or section 2101
(after deducting the credits provided for in sections 2010,
2011, 2012, and 2014) computed without regard to this section,
exceeds
(B) such tax computed by excluding from the decedent's gross
estate the value of such property transferred and, if
applicable, by making the adjustment hereinafter indicated.
If any deduction is otherwise allowable under section 2055 or
section 2106(a)(2) (relating to charitable deduction) then, for
the purpose of the computation indicated in subparagraph (B), the
amount of such deduction shall be reduced by that part of such
deduction which the value of such property transferred bears to
the decedent's entire gross estate reduced by the deductions
allowed under sections 2053 and 2054, or section 2106(a)(1)
(relating to deduction for expenses, losses, etc.). For purposes
of this section, the value of such property transferred shall be
the value as provided for in subsection (d) of this section.
(2) Two or more transferors
If the credit provided in this section relates to property
received from 2 or more transferors, the limitation provided in
paragraph (1) of this subsection shall be computed by aggregating
the value of the property so transferred to the decedent. The
aggregate limitation so determined shall be apportioned in
accordance with the value of the property transferred to the
decedent by each transferor.
(d) Valuation of property transferred
The value of property transferred to the decedent shall be the
value used for the purpose of determining the Federal estate tax
liability of the estate of the transferor but -
(1) there shall be taken into account the effect of the tax
imposed by section 2001 or 2101, or any estate, succession,
legacy, or inheritance tax, on the net value to the decedent of
such property;
(2) where such property is encumbered in any manner, or where
the decedent incurs any obligation imposed by the transferor with
respect to such property, such encumbrance or obligation shall be
taken into account in the same manner as if the amount of a gift
to the decedent of such property was being determined; and
(3) if the decedent was the spouse of the transferor at the
time of the transferor's death, the net value of the property
transferred to the decedent shall be reduced by the amount
allowed under section 2056 (relating to marital deductions), as a
deduction from the gross estate of the transferor.
(e) Property defined
For purposes of this section, the term "property" includes any
beneficial interest in property, including a general power of
appointment (as defined in section 2041).
(f) Treatment of additional tax imposed under section 2032A
If section 2032A applies to any property included in the gross
estate of the transferor and an additional tax is imposed with
respect to such property under section 2032A(c) before the date
which is 2 years after the date of the decedent's death, for
purposes of this section -
(1) the additional tax imposed by section 2032A(c) shall be
treated as a Federal estate tax payable with respect to the
estate of the transferor; and
(2) the value of such property and the amount of the taxable
estate of the transferor shall be determined as if section 2032A
did not apply with respect to such property.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 377; Pub. L. 94-455, title XIX,
Sec. 1902(a)(2), title XX, Secs. 2001(c)(1)(C), 2003(c),
2006(b)(2), Oct. 4, 1976, 90 Stat. 1804, 1850, 1862, 1888; Pub. L.
99-514, title XIV, Sec. 1432(c)(2), Oct. 22, 1986, 100 Stat. 2730;
Pub. L. 100-647, title I, Sec. 1011A(g)(7), Nov. 10, 1988, 102
Stat. 3481; Pub. L. 105-34, title X, Sec. 1073(b)(2), Aug. 5, 1997,
111 Stat. 948; Pub. L. 107-16, title V, Sec. 532(c)(2), June 7,
2001, 115 Stat. 74.)
-STATAMEND-
AMENDMENT OF SUBSECTION (C)(1)(A)
Pub. L. 107-16, title V, Sec. 532(c)(2), (d), title IX, Sec. 901,
June 7, 2001, 115 Stat. 74, 75, 150, provided that, applicable to
estates of decedents dying, and generation-skipping transfers,
after Dec. 31, 2004, subsection (c)(1)(A) of this section is
temporarily amended by striking out "2011," after "sections 2010,".
See Effective and Termination Dates of 2001 Amendment note below.
-MISC1-
AMENDMENTS
1997 - Subsec. (g). Pub. L. 105-34 struck out heading and text of
subsec. (g). Prior to amendment, text read as follows: "For
purposes of this section, the estate tax paid shall not include any
portion of such tax attributable to section 4980A(d)."
1988 - Subsec. (g). Pub. L. 100-647 added subsec. (g).
1986 - Subsec. (g). Pub. L. 99-514 struck out subsec. (g) which
provided for treatment of tax imposed on certain
generation-skipping transfers.
1976 - Subsec. (b). Pub. L. 94-455, Sec. 2001(c)(1)(C)(i), struck
out "and increased by the exemption provided for by section 2052 or
section 2106(a)(3), or the corresponding provisions of prior laws,
in determining the taxable estate of the transferor for purposes of
the estate tax" after "death taxes paid with respect to such
estate".
Subsec. (c)(1)(A). Pub. L. 94-455, Sec. 2001(c)(1)(C)(ii),
substituted "credits provided for in sections 2010, 2011, 2012, and
2014) computed" for "credits for State death taxes, gift tax, and
foreign death taxes provided for in sections 2011, 2012, and 2014)
computed".
Subsec. (d)(3). Pub. L. 94-455, Sec. 1902(a)(2), struck out ", or
the corresponding provision of prior law," after "marital
deductions)".
Subsec. (f). Pub. L. 94-455, Sec. 2003(c), added subsec. (f).
Subsec. (g). Pub. L. 94-455, Sec. 2006(b)(2), added subsec. (g).
EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
Amendment by Pub. L. 107-16 applicable to estates of decedents
dying, and generation-skipping transfers, after Dec. 31, 2004, see
section 532(d) of Pub. L. 107-16, set out as a note under section
2011 of this title.
Amendment by Pub. L. 107-16 inapplicable to estates of decedents
dying, gifts made, or generation skipping transfers, after Dec. 31,
2010, and the Internal Revenue Code of 1986 to be applied and
administered to such estates, gifts, and transfers as if such
amendment had never been enacted, see section 901 of Pub. L.
107-16, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1997 AMENDMENT
Amendment by Pub. L. 105-34 applicable to estates of decedents
dying after Dec. 31, 1996, see section 1073(c) of Pub. L. 105-34,
set out as an Effective Date of Repeal note under section 4980A of
this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100-647 effective, except as otherwise
provided, as if included in the provision of the Tax Reform Act of
1986, Pub. L. 99-514, to which such amendment relates, see section
1019(a) of Pub. L. 100-647, set out as a note under section 1 of
this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by Pub. L. 99-514 applicable to generation-skipping
transfers (within the meaning of section 2611 of this title) made
after Oct. 22, 1986, except as otherwise provided, see section 1433
of Pub. L. 99-514, set out as an Effective Date note under section
2601 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 2056, 2102, 2107 of this
title.
-End-
-CITE-
26 USC Sec. 2014 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle B - Estate and Gift Taxes
CHAPTER 11 - ESTATE TAX
Subchapter A - Estates of Citizens or Residents
PART II - CREDITS AGAINST TAX
-HEAD-
Sec. 2014. Credit for foreign death taxes
-STATUTE-
(a) In general
The tax imposed by section 2001 shall be credited with the amount
of any estate, inheritance, legacy, or succession taxes actually
paid to any foreign country in respect of any property situated
within such foreign country and included in the gross estate (not
including any such taxes paid with respect to the estate of a
person other than the decedent). The determination of the country
within which property is situated shall be made in accordance with
the rules applicable under subchapter B (sec. 2101 and following)
in determining whether property is situated within or without the
United States.
(b) Limitations on credit
The credit provided in this section with respect to such taxes
paid to any foreign country -
(1) shall not, with respect to any such tax, exceed an amount
which bears the same ratio to the amount of such tax actually
paid to such foreign country as the value of property which is -
(A) situated within such foreign country,
(B) subjected to such tax, and
(C) included in the gross estate
bears to the value of all property subjected to such tax; and
(2) shall not, with respect to all such taxes, exceed an amount
which bears the same ratio to the tax imposed by section 2001
(after deducting from such tax the credits provided by sections
2010, 2011, and 2012) as the value of property which is -
(A) situated within such foreign country,
(B) subjected to the taxes of such foreign country, and
(C) included in the gross estate
bears to the value of the entire gross estate reduced by the
aggregate amount of the deductions allowed under sections 2055
and 2056.
(c) Valuation of property
(1) The values referred to in the ratio stated in subsection
(b)(1) are the values determined for purposes of the tax imposed by
such foreign country.
(2) The values referred to in the ratio stated in subsection
(b)(2) are the values determined under this chapter; but, in
applying such ratio, the value of any property described in
subparagraphs (A), (B), and (C) thereof shall be reduced by such
amount as will properly reflect, in accordance with regulations
prescribed by the Secretary, the deductions allowed in respect of
such property under sections 2055 and 2056 (relating to charitable
and marital deductions).
(d) Proof of credit
The credit provided in this section shall be allowed only if the
taxpayer establishes to the satisfaction of the Secretary -
(1) the amount of taxes actually paid to the foreign country,
(2) the amount and date of each payment thereof,
(3) the description and value of the property in respect of
which such taxes are imposed, and
(4) all other information necessary for the verification and
computation of the credit.
(e) Period of limitation
The credit provided in this section shall be allowed only for
such taxes as were actually paid and credit therefor claimed within
4 years after the filing of the return required by section 6018,
except that -
(1) If a petition for redetermination of a deficiency has been
filed with the Tax Court within the time prescribed in section
6213(a), then within such 4-year period or before the expiration
of 60 days after the decision of the Tax Court becomes final.
(2) If, under section 6161, an extension of time has been
granted for payment of the tax shown on the return, or of a
deficiency, then within such 4-year period or before the date of
the expiration of the period of the extension.
Refund based on such credit may (despite the provisions of sections
6511 and 6512) be made if claim therefor is filed within the period
above provided. Any such refund shall be made without interest.
(f) Additional limitation in cases involving a deduction under
section 2053(d)
In any case where a deduction is allowed under section 2053(d)
for an estate, succession, legacy, or inheritance tax imposed by
and actually paid to any foreign country upon a transfer by the
decedent for public, charitable, or religious uses described in
section 2055, the property described in subparagraphs (A), (B), and
(C) of paragraphs (1) and (2) of subsection (b) of this section
shall not include any property in respect of which such deduction
is allowed under section 2053(d).
(g) Possession of United States deemed a foreign country
For purposes of the credits authorized by this section, each
possession of the United States shall be deemed to be a foreign
country.
(h) Similar credit required for certain alien residents
Whenever the President finds that -
(1) a foreign country, in imposing estate, inheritance, legacy,
or succession taxes, does not allow to citizens of the United
States resident in such foreign country at the time of death a
credit similar to the credit allowed under subsection (a),
(2) such foreign country, when requested by the United States
to do so has not acted to provide such a similar credit in the
case of citizens of the United States resident in such foreign
country at the time of death, and
(3) it is in the public interest to allow the credit under
subsection (a) in the case of citizens or subjects of such
foreign country only if it allows such a similar credit in the
case of citizens of the United States resident in such foreign
country at the time of death,
the President shall proclaim that, in the case of citizens or
subjects of such foreign country dying while the proclamation
remains in effect, the credit under subsection (a) shall be allowed
only if such foreign country allows such a similar credit in the
case of citizens of the United States resident in such foreign
country at the time of death.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 378; Pub. L. 85-866, title I,
Sec. 102(c)(2), Sept. 2, 1958, 72 Stat. 1674; Pub. L. 86-175, Sec.
2, Aug. 21, 1959, 73 Stat. 397; Pub. L. 89-809, title I, Sec.
106(b)(3), Nov. 13, 1966, 80 Stat. 1570; Pub. L. 94-455, title XIX,
Sec. 1906(b)(13)(A), title XX, Sec. 2001(c)(1)(G), Oct. 4, 1976, 90
Stat. 1834, 1852; Pub. L. 107-16, title V, Sec. 532(c)(3), June 7,
2001, 115 Stat. 74.)
-STATAMEND-
AMENDMENT OF SUBSECTION (B)(2)
Pub. L. 107-16, title V, Sec. 532(c)(3), (d), title IX, Sec. 901,
June 7, 2001, 115 Stat. 74, 75, 150, provided that, applicable to
estates of decedents dying, and generation-skipping transfers,
after Dec. 31, 2004, subsection (b)(2) of this section is
temporarily amended by striking out ", 2011," after "sections
2010". See Effective and Termination Dates of 2001 Amendment note
below.
-MISC1-
AMENDMENTS
1976 - Subsec. (b)(2). Pub. L. 94-455, Sec. 2001(c)(1)(G),
inserted reference to section 2010 in introductory provisions.
Subsecs. (c), (d). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck
out "or his delegate" after "Secretary".
1966 - Subsec. (a). Pub. L. 89-809 struck out provision that, if
the decedent at the time of his death was not a citizen of the
United States, credit would not be allowed under this section
unless the foreign country of which the decedent was a citizen or
subject, in imposing estate, inheritance, legacy, or succession
taxes, allows a similar credit in the case of a citizen of the
United States resident in such country.
Subsec. (h). Pub. L. 89-809 added subsec. (h).
1959 - Subsecs. (f), (g). Pub. L. 86-175 added subsec. (f) and
redesignated former subsec. (f) as (g).
1958 - Subsec. (f). Pub. L. 85-866 added subsec. (f).
EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
Amendment by Pub. L. 107-16 applicable to estates of decedents
dying, and generation-skipping transfers, after Dec. 31, 2004, see
section 532(d) of Pub. L. 107-16, set out as a note under section
2011 of this title.
Amendment by Pub. L. 107-16 inapplicable to estates of decedents
dying, gifts made, or generation skipping transfers, after Dec. 31,
2010, and the Internal Revenue Code of 1986 to be applied and
administered to such estates, gifts, and transfers as if such
amendment had never been enacted, see section 901 of Pub. L.
107-16, set out as a note under section 1 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 106(b)(4) of Pub.
L. 89-809, set out as a note under section 901 of this title.
EFFECTIVE DATE OF 1959 AMENDMENT
Amendment by Pub. L. 86-175 applicable with respect to estates of
decedents dying on or after July 1, 1955, see section 4 of Pub. L.
86-175, set out as a note under section 2053 of this title.
EFFECTIVE DATE OF 1958 AMENDMENT
Amendment by Pub. L. 85-866 applicable to estates of decedents
dying after Sept. 2, 1958, see section 102(d) of Pub. L. 85-866,
set out as a note under section 2011 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 2013, 2015, 2016, 2053,
2056A, 6511, 6612 of this title.
-End-
-CITE-
26 USC Sec. 2015 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle B - Estate and Gift Taxes
CHAPTER 11 - ESTATE TAX
Subchapter A - Estates of Citizens or Residents
PART II - CREDITS AGAINST TAX
-HEAD-
Sec. 2015. Credit for death taxes on remainders
-STATUTE-
Where an election is made under section 6163(a) to postpone
payment of the tax imposed by section 2001, or 2101, such part of
any estate, inheritance, legacy, or succession taxes allowable as a
credit under section 2011 or 2014, as is attributable to a
reversionary or remainder interest may be allowed as a credit
against the tax attributable to such interest, subject to the
limitations on the amount of the credit contained in such sections,
if such part is paid, and credit therefor claimed, at any time
before the expiration of the time for payment of the tax imposed by
section 2001 or 2101 as postponed and extended under section 6163.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 379; Pub. L. 85-866, title I,
Sec. 66(a)(1), Sept. 2, 1958, 72 Stat. 1657; Pub. L. 107-16, title
V, Sec. 532(c)(4), June 7, 2001, 115 Stat. 74.)
-STATAMEND-
AMENDMENT OF SECTION
Pub. L. 107-16, title V, Sec. 532(c)(4), (d), title IX, Sec. 901,
June 7, 2001, 115 Stat. 74, 75, 150, provided that, applicable to
estates of decedents dying, and generation-skipping transfers,
after Dec. 31, 2004, this section is temporarily amended by
striking out "2011 or" before "2014". See Effective and Termination
Dates of 2001 Amendment note below.
-MISC1-
AMENDMENTS
1958 - Pub. L. 85-866 substituted "the time for payment of the
tax imposed by section 2001 or 2101 as postponed and extended under
section 6163" for "60 days after the termination of the precedent
interest or interests in the property".
EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
Amendment by Pub. L. 107-16 applicable to estates of decedents
dying, and generation-skipping transfers, after Dec. 31, 2004, see
section 532(d) of Pub. L. 107-16, set out as a note under section
2011 of this title.
Amendment by Pub. L. 107-16 inapplicable to estates of decedents
dying, gifts made, or generation skipping transfers, after Dec. 31,
2010, and the Internal Revenue Code of 1986 to be applied and
administered to such estates, gifts, and transfers as if such
amendment had never been enacted, see section 901 of Pub. L.
107-16, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1958 AMENDMENT
Section 66(a)(3) of Pub. L. 85-866 provided that: "The amendments
made by paragraphs (1) and (2) [amending this section and section
927 of I.R.C. 1939] shall apply in the case of any reversionary or
remainder interest in property only if the precedent interest or
interests in the property did not terminate before the beginning of
the 60-day period which ends on the date of the enactment of this
Act [Sept. 2, 1958]."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 6511 of this title.
-End-
-CITE-
26 USC Sec. 2016 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle B - Estate and Gift Taxes
CHAPTER 11 - ESTATE TAX
Subchapter A - Estates of Citizens or Residents
PART II - CREDITS AGAINST TAX
-HEAD-
Sec. 2016. Recovery of taxes claimed as credit
-STATUTE-
If any tax claimed as a credit under section 2011 or 2014 is
recovered from any foreign country, the executor, or any other
person or persons recovering such amount, shall give notice of such
recovery to the Secretary at such time and in such manner as may be
required by regulations prescribed by him, and the Secretary shall
(despite the provisions of section 6501) redetermine the amount of
the tax under this chapter and the amount, if any, of the tax due
on such redetermination, shall be paid by the executor or such
person or persons, as the case may be, on notice and demand. No
interest shall be assessed or collected on any amount of tax due on
any redetermination by the Secretary resulting from a refund to the
executor of tax claimed as a credit under section 2014, for any
period before the receipt of such refund, except to the extent
interest was paid by the foreign country on such refund.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 380; Pub. L. 94-455, title XIX,
Secs. 1902(a)(12)(C), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1806,
1834; Pub. L. 107-16, title V, Sec. 532(c)(4), June 7, 2001, 115
Stat. 74; Pub. L. 107-147, title IV, Sec. 411(h), Mar. 9, 2002, 116
Stat. 46.)
-STATAMEND-
AMENDMENT OF SECTION
Pub. L. 107-16, title V, Sec. 532(c)(4), (d), title IX, Sec. 901,
June 7, 2001, 115 Stat. 74, 75, 150, provided that, applicable to
estates of decedents dying, and generation-skipping transfers,
after Dec. 31, 2004, this section is temporarily amended by
striking out "2011 or" before "2014 is recovered". See Effective
and Termination Dates of 2001 Amendment note below.
-MISC1-
AMENDMENTS
2002 - Pub. L. 107-147 struck out "any State, any possession of
the United States, or the District of Columbia," after "any foreign
country,".
1976 - Pub. L. 94-455 struck out "Territory or" after "any State,
any" and "or his delegate" after "Secretary".
EFFECTIVE DATE OF 2002 AMENDMENT
Amendment by Pub. L. 107-147 effective as if included in the
provisions of the Economic Growth and Tax Relief Reconciliation Act
of 2001, Pub. L. 107-16, to which such amendment relates, see
section 411(x) of Pub. L. 107-147, set out as a note under section
25B of this title.
EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
Amendment by Pub. L. 107-16 applicable to estates of decedents
dying, and generation-skipping transfers, after Dec. 31, 2004, see
section 532(d) of Pub. L. 107-16, set out as a note under section
2011 of this title.
Amendment by Pub. L. 107-16 inapplicable to estates of decedents
dying, gifts made, or generation skipping transfers, after Dec. 31,
2010, and the Internal Revenue Code of 1986 to be applied and
administered to such estates, gifts, and transfers as if such
amendment had never been enacted, see section 901 of Pub. L.
107-16, set out as a note under section 1 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6040, 6213, 6501 of this
title.
-End-
-CITE-
26 USC PART III - GROSS ESTATE 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle B - Estate and Gift Taxes
CHAPTER 11 - ESTATE TAX
Subchapter A - Estates of Citizens or Residents
PART III - GROSS ESTATE
-HEAD-
PART III - GROSS ESTATE
-MISC1-
Sec.
2031. Definition of gross estate.
2032. Alternate valuation.
2032A. Valuation of certain farm, etc., real property.
2033. Property in which the decedent had an interest.
[2033A. Repealed.]
2034. Dower or curtesy interests.
2035. Adjustments for certain gifts made within 3 years of
decedent's death.
2036. Transfers with retained life estate.
2037. Transfers taking effect at death.
2038. Revocable transfers.
2039. Annuities.
2040. Joint interests.
2041. Powers of appointment.
2042. Proceeds of life insurance.
2043. Transfers for insufficient consideration.
2044. Certain property for which marital deduction was
previously allowed.
2045. Prior interests.
2046. Disclaimers.
AMENDMENTS
1998 - Pub. L. 105-206, title VI, Sec. 6007(b)(1)(E), July 22,
1998, 112 Stat. 808, struck out item 2033A "Family-owned business
exclusion".
1997 - Pub. L. 105-34, title V, Sec. 502(b), title XIII, Sec.
1310(b), Aug. 5, 1997, 111 Stat. 852, 1044, added item 2033A and
substituted "certain gifts" for "gifts" in item 2035.
1981 - Pub. L. 97-34, title IV, Sec. 403(d)(3)(A)(ii), Aug. 13,
1981, 95 Stat. 304, added item 2044 and redesignated former items
2044 and 2045 as items 2045 and 2046, respectively.
1976 - Pub. L. 94-455, title XX, Secs. 2001(c)(1)(N)(iii),
2003(d)(1), 2009(b)(3)(B), Oct. 4, 1976, 90 Stat. 1853, 1862, 1894,
added items 2032A and 2045 and substituted "Adjustments for gifts
made within 3 years of decedent's death" for "Transactions in
contemplation of death" in item 2035.
-End-
-CITE-
26 USC Sec. 2031 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle B - Estate and Gift Taxes
CHAPTER 11 - ESTATE TAX
Subchapter A - Estates of Citizens or Residents
PART III - GROSS ESTATE
-HEAD-
Sec. 2031. Definition of gross estate
-STATUTE-
(a) General
The value of the gross estate of the decedent shall be determined
by including to the extent provided for in this part, the value at
the time of his death of all property, real or personal, tangible
or intangible, wherever situated.
(b) Valuation of unlisted stock and securities
In the case of stock and securities of a corporation the value of
which, by reason of their not being listed on an exchange and by
reason of the absence of sales thereof, cannot be determined with
reference to bid and asked prices or with reference to sales
prices, the value thereof shall be determined by taking into
consideration, in addition to all other factors, the value of stock
or securities of corporations engaged in the same or a similar line
of business which are listed on an exchange.
(c) Estate tax with respect to land subject to a qualified
conservation easement
(1) In general
If the executor makes the election described in paragraph (6),
then, except as otherwise provided in this subsection, there
shall be excluded from the gross estate the lesser of -
(A) the applicable percentage of the value of land subject to
a qualified conservation easement, reduced by the amount of any
deduction under section 2055(f) with respect to such land, or
(B) the exclusion limitation.
(2) Applicable percentage
For purposes of paragraph (1), the term "applicable percentage"
means 40 percent reduced (but not below zero) by 2 percentage
points for each percentage point (or fraction thereof) by which
the value of the qualified conservation easement is less than 30
percent of the value of the land (!1) (determined without regard
to the value of such easement and reduced by the value of any
retained development right (as defined in paragraph (5)). The
values taken into account under the preceding sentence shall be
such values as of the date of the contribution referred to in
paragraph (8)(B).
(3) Exclusion limitation
For purposes of paragraph (1), the exclusion limitation is the
limitation determined in accordance with the following table:
In the case of estates of The exclusion
decedents dying during: limitation is:
1998 $100,000
1999 $200,000
2000 $300,000
2001 $400,000
2002 or thereafter $500,000.
(4) Treatment of certain indebtedness
(A) In general
The exclusion provided in paragraph (1) shall not apply to
the extent that the land is debt-financed property.
(B) Definitions
For purposes of this paragraph -
(i) Debt-financed property
The term "debt-financed property" means any property with
respect to which there is an acquisition indebtedness (as
defined in clause (ii)) on the date of the decedent's death.
(ii) Acquisition indebtedness
The term "acquisition indebtedness" means, with respect to
debt-financed property, the unpaid amount of -
(I) the indebtedness incurred by the donor in acquiring
such property,
(II) the indebtedness incurred before the acquisition of
such property if such indebtedness would not have been
incurred but for such acquisition,
(III) the indebtedness incurred after the acquisition of
such property if such indebtedness would not have been
incurred but for such acquisition and the incurrence of
such indebtedness was reasonably foreseeable at the time of
such acquisition, and
(IV) the extension, renewal, or refinancing of an
acquisition indebtedness.
(5) Treatment of retained development right
(A) In general
Paragraph (1) shall not apply to the value of any development
right retained by the donor in the conveyance of a qualified
conservation easement.
(B) Termination of retained development right
If every person in being who has an interest (whether or not
in possession) in the land executes an agreement to extinguish
permanently some or all of any development rights (as defined
in subparagraph (D)) retained by the donor on or before the
date for filing the return of the tax imposed by section 2001,
then any tax imposed by section 2001 shall be reduced
accordingly. Such agreement shall be filed with the return of
the tax imposed by section 2001. The agreement shall be in such
form as the Secretary shall prescribe.
(C) Additional tax
Any failure to implement the agreement described in
subparagraph (B) not later than the earlier of -
(i) the date which is 2 years after the date of the
decedent's death, or
(ii) the date of the sale of such land subject to the
qualified conservation easement,
shall result in the imposition of an additional tax in the
amount of the tax which would have been due on the retained
development rights subject to such agreement. Such additional
tax shall be due and payable on the last day of the 6th month
following such date.
(D) Development right defined
For purposes of this paragraph, the term "development right"
means any right to use the land subject to the qualified
conservation easement in which such right is retained for any
commercial purpose which is not subordinate to and directly
supportive of the use of such land as a farm for farming
purposes (within the meaning of section 2032A(e)(5)).
(6) Election
The election under this subsection shall be made on or before
the due date (including extensions) for filing the return of tax
imposed by section 2001 and shall be made on such return. Such an
election, once made, shall be irrevocable.
(7) Calculation of estate tax due
An executor making the election described in paragraph (6)
shall, for purposes of calculating the amount of tax imposed by
section 2001, include the value of any development right (as
defined in paragraph (5)) retained by the donor in the conveyance
of such qualified conservation easement. The computation of tax
on any retained development right prescribed in this paragraph
shall be done in such manner and on such forms as the Secretary
shall prescribe.
(8) Definitions
For purposes of this subsection -
(A) Land subject to a qualified conservation easement
The term "land subject to a qualified conservation easement"
means land -
(i) which is located in the United States or any possession
of the United States,
(ii) which was owned by the decedent or a member of the
decedent's family at all times during the 3-year period
ending on the date of the decedent's death, and
(iii) with respect to which a qualified conservation
easement has been made by an individual described in
subparagraph (C), as of the date of the election described in
paragraph (6).
(B) Qualified conservation easement
The term "qualified conservation easement" means a qualified
conservation contribution (as defined in section 170(h)(1)) of
a qualified real property interest (as defined in section
170(h)(2)(C)), except that clause (iv) of section 170(h)(4)(A)
shall not apply, and the restriction on the use of such
interest described in section 170(h)(2)(C) shall include a
prohibition on more than a de minimis use for a commercial
recreational activity.
(C) Individual described
An individual is described in this subparagraph if such
individual is -
(i) the decedent,
(ii) a member of the decedent's family,
(iii) the executor of the decedent's estate, or
(iv) the trustee of a trust the corpus of which includes
the land to be subject to the qualified conservation
easement.
(D) Member of family
The term "member of the decedent's family" means any member
of the family (as defined in section 2032A(e)(2)) of the
decedent.
(9) Treatment of easements granted after death
In any case in which the qualified conservation easement is
granted after the date of the decedent's death and on or before
the due date (including extensions) for filing the return of tax
imposed by section 2001, the deduction under section 2055(f) with
respect to such easement shall be allowed to the estate but only
if no charitable deduction is allowed under chapter 1 to any
person with respect to the grant of such easement.
(10) Application of this section to interests in partnerships,
corporations, and trusts
This section shall apply to an interest in a partnership,
corporation, or trust if at least 30 percent of the entity is
owned (directly or indirectly) by the decedent, as determined
under the rules described in section 2057(e)(3).
(d) Cross reference
For executor's right to be furnished on request a statement
regarding any valuation made by the Secretary within the gross
estate, see section 7517.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 380; Pub. L. 87-834, Sec.
18(a)(1), Oct. 16, 1962, 76 Stat. 1052; Pub. L. 94-455, title XX,
Sec. 2008(a)(2)(A), Oct. 4, 1976, 90 Stat. 1891; Pub. L. 105-34,
title V, Sec. 508(a), Aug. 5, 1997, 111 Stat. 857; Pub. L. 105-206,
title VI, Sec. 6007(g), July 22, 1998, 112 Stat. 810; Pub. L.
105-277, div. J, title IV, Sec. 4006(c)(3), Oct. 21, 1998, 112
Stat. 2681-913; Pub. L. 107-16, title V, Sec. 551(a), (b), June 7,
2001, 115 Stat. 86.)
-STATAMEND-
AMENDMENT OF SECTION
For termination of amendment by section 901 of Pub. L. 107-16,
see Effective and Termination Dates of 2001 Amendment note below.
-MISC1-
AMENDMENTS
2001 - Subsec. (c)(2). Pub. L. 107-16, Secs. 551(b), 901,
temporarily inserted at end "The values taken into account under
the preceding sentence shall be such values as of the date of the
contribution referred to in paragraph (8)(B)." See Effective and
Termination Dates of 2001 Amendment note below.
Subsec. (c)(8)(A)(i). Pub. L. 107-16, Secs. 551(a), 901,
temporarily amended cl. (i) generally. Prior to amendment, cl. (i)
read as follows: "which is located -
"(I) in or within 25 miles of an area which, on the date of the
decedent's death, is a metropolitan area (as defined by the
Office of Management and Budget),
"(II) in or within 25 miles of an area which, on the date of
the decedent's death, is a national park or wilderness area
designated as part of the National Wilderness Preservation System
(unless it is determined by the Secretary that land in or within
25 miles of such a park or wilderness area is not under
significant development pressure), or
"(III) in or within 10 miles of an area which, on the date of
the decedent's death, is an Urban National Forest (as designated
by the Forest Service),".
See Effective and Termination Dates of 2001 Amendment note below.
1998 - Subsec. (c)(6). Pub. L. 105-206, Sec. 6007(g)(2),
substituted "on or before the due date (including extensions) for
filing the return of tax imposed by section 2001 and shall be made
on such return." for "on the return of the tax imposed by section
2001."
Subsec. (c)(9). Pub. L. 105-206, Sec. 6007(g)(1), added par. (9).
Former par. (9) redesignated (10).
Subsec. (c)(10). Pub. L. 105-277, Sec. 4006(c)(3), substituted
"section 2057(e)(3)" for "section 2033A(e)(3)".
Pub. L. 105-206, Sec. 6007(g)(1), redesignated par. (9) as (10).
1997 - Subsecs. (c), (d). Pub. L. 105-34 added subsec. (c) and
redesignated former subsec. (c) as (d).
1976 - Subsec. (c). Pub. L. 94-455 added subsec. (c).
1962 - Subsec. (a). Pub. L. 87-834 struck out provisions which
excepted real property situated outside the United States.
EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
Pub. L. 107-16, title V, Sec. 551(c), June 7, 2001, 115 Stat. 86,
provided that: "The amendments made by this section [amending this
section] shall apply to estates of decedents dying after December
31, 2000."
Amendment by Pub. L. 107-16 inapplicable to estates of decedents
dying, gifts made, or generation skipping transfers, after Dec. 31,
2010, and the Internal Revenue Code of 1986 to be applied and
administered to such estates, gifts, and transfers as if such
amendment had never been enacted, see section 901 of Pub. L.
107-16, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1998 AMENDMENT
Amendment by Pub. L. 105-206 effective, except as otherwise
provided, as if included in the provisions of the Taxpayer Relief
Act of 1997, Pub. L. 105-34, to which such amendment relates, see
section 6024 of Pub. L. 105-206, set out as a note under section 1
of this title.
EFFECTIVE DATE OF 1997 AMENDMENT
Amendment by Pub. L. 105-34 applicable to estates of decedents
dying after Dec. 31, 1997, see section 508(e)(1) of Pub. L. 105-34,
set out as a note under section 1014 of this title.
EFFECTIVE DATE OF 1962 AMENDMENT
Section 18(b) of Pub. L. 87-834 provided that:
"(1) Except as provided in paragraph (2), the amendments made by
subsection (a) [amending this section and sections 2033, 2034,
2035, 2036, 2037, 2038, 2040, and 2041 of this title] shall apply
to the estates of decedents dying after the date of the enactment
of this Act [Oct. 16, 1962].
"(2) In the case of a decedent dying after the date of the
enactment of this Act [Oct. 16, 1962] and before July 1, 1964, the
value of real property situated outside of the United States shall
not be included in the gross estate (as defined in section 2031(a))
of the decedent -
"(A) under section 2033, 2034, 2035(a), 2036(a), 2037(a), or
2038(a) to the extent the real property, or the decedent's
interest in it, was acquired by the decedent before February 1,
1962;
"(B) under section 2040 to the extent such property or interest
was acquired by the decedent before February 1, 1962, or was held
by the decedent and the survivor in a joint tenancy or tenancy by
the entirety before February 1, 1962; or
"(C) under section 2041(a) to the extent that before February
1, 1962, such property or interest was subject to a general power
of appointment (as defined in section 2041) possessed by the
decedent.
In the case of real property, or an interest therein, situated
outside of the United States (including a general power of
appointment in respect of such property or interest, and including
property held by the decedent and the survivor in a joint tenancy
or tenancy by the entirety) which was acquired by the decedent
after January 31, 1962, by gift within the meaning of section 2511,
or from a prior decedent by devise or inheritance, or by reason of
death, form of ownership, or other conditions (including the
exercise or nonexercise of a power of appointment), for purposes of
this paragraph such property or interest therein shall be deemed to
have been acquired by the decedent before February 1, 1962, if
before that date the donor or prior decedent had acquired the
property or his interest therein or had possessed a power of
appointment in respect of the property or interest."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 1014, 2103, 7520 of this
title; title 43 section 1620.
-FOOTNOTE-
(!1) So in original. No closing parenthesis was enacted.
-End-
-CITE-
26 USC Sec. 2032 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle B - Estate and Gift Taxes
CHAPTER 11 - ESTATE TAX
Subchapter A - Estates of Citizens or Residents
PART III - GROSS ESTATE
-HEAD-
Sec. 2032. Alternate valuation
-STATUTE-
(a) General
The value of the gross estate may be determined, if the executor
so elects, by valuing all the property included in the gross estate
as follows:
(1) In the case of property distributed, sold, exchanged, or
otherwise disposed of, within 6 months after the decedent's death
such property shall be valued as of the date of distribution,
sale, exchange, or other disposition.
(2) In the case of property not distributed, sold, exchanged,
or otherwise disposed of, within 6 months after the decedent's
death such property shall be valued as of the date 6 months after
the decedent's death.
(3) Any interest or estate which is affected by mere lapse of
time shall be included at its value as of the time of death
(instead of the later date) with adjustment for any difference in
its value as of the later date not due to mere lapse of time.
(b) Special rules
No deduction under this chapter of any item shall be allowed if
allowance for such items is in effect given by the alternate
valuation provided by this section. Wherever in any other
subsection or section of this chapter reference is made to the
value |
