26 USC 2106 - Taxable estate

View all text of Subchapter B [§ 2101 - § 2108]

§ 2106. Taxable estate

(a) Definition of taxable estate

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

(1) Expenses, losses, indebtedness, and taxes

(2) Transfers for public, charitable, and religious uses

(A) In general

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

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

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

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

(B) Powers of appointment

(D) Limitation on deduction

(E) Disallowance of deductions in certain cases

(F) Cross references

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

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

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

(3) Marital deduction

(4) State death taxes

(b) Condition of allowance of deductions

(Aug. 16, 1954, ch. 736, 68A Stat. 398; Pub. L. 85–866, title I, § 30(d), Sept. 2, 1958, 72 Stat. 1631; Pub. L. 86–779, § 4(c), Sept. 14, 1960, 74 Stat. 1000; Pub. L. 89–809, title I, § 108(e), Nov. 13, 1966, 80 Stat. 1572; Pub. L. 91–172, title II, § 201(d)(2), (4)(B), Dec. 30, 1969, 83 Stat. 561; Pub. L. 94–455, title XIII, § 1307(d)(1)(B)(iii), (C), title XIX, § 1902(a)(5), (12)(A), title XX, §  2001(c)(1)(F), Oct. 4, 1976, 90 Stat. 1727, 1805, 1852; Pub. L. 97–473, title II, § 202(b)(6), Jan. 14, 1983, 96 Stat. 2610; Pub. L. 99–514, title XIV, § 1422(c), Oct. 22, 1986, 100 Stat. 2717; Pub. L. 100–203, title X, § 10711(a)(4), Dec. 22, 1987, 101 Stat. 1330–464; Pub. L. 100–647, title V, § 5033(c), Nov. 10, 1988, 102 Stat. 3672; Pub. L. 101–239, title VII, § 7815(d)(3), Dec. 19, 1989, 103 Stat. 2415; Pub. L. 107–16, title V, § 532(c)(8), June 7, 2001, 115 Stat. 75; Pub. L. 113–295, div. A, title II, § 221(a)(95)(A)(ii), Dec. 19, 2014, 128 Stat. 4051; Pub. L. 115–141, div. U, title IV, § 401(a)(203), Mar. 23, 2018, 132 Stat. 1194.)