Internal Revenue Code:Sec. 2105. Property without the United States

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Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle B - Estate and Gift Taxes
       CHAPTER 11 - ESTATE TAX
        Subchapter B - Estates of Nonresidents Not Citizens
      

Statute

    Sec. 2105. Property without the United States
 
    (a) Proceeds of life insurance
      For purposes of this subchapter, the amount receivable as
    insurance on the life of a nonresident not a citizen of the United
    States shall not be deemed property within the United States.
    (b) Bank deposits and certain other debt obligations
      For purposes of this subchapter, the following shall not be
    deemed property within the United States -
        (1) amounts described in section 871(i)(3), if any interest
      thereon would not be subject to tax by reason of section
      871(i)(1) were such interest received by the decedent at the time
      of his death,
        (2) deposits with a foreign branch of a domestic corporation or
      domestic partnership, if such branch is engaged in the commercial
      banking business,
        (3) debt obligations, if, without regard to whether a statement
      meeting the requirements of section 871(h)(5) has been received,
      any interest thereon would be eligible for the exemption from tax
      under section 871(h)(1) were such interest received by the
      decedent at the time of his death, and
        (4) obligations which would be original issue discount
      obligations as defined in section 871(g)(1) but for subparagraph
      (B)(i) thereof, if any interest thereon (were such interest
      received by the decedent at the time of his death) would not be
      effectively connected with the conduct of a trade or business
      within the United States.
    Notwithstanding the preceding sentence, if any portion of the
    interest on an obligation referred to in paragraph (3) would not be
    eligible for the exemption referred to in paragraph (3) by reason
    of section 871(h)(4) if the interest were received by the decedent
    at the time of his death, then an appropriate portion (as
    determined in a manner prescribed by the Secretary) of the value
    (as determined for purposes of this chapter) of such debt
    obligation shall be deemed property within the United States.
    (c) Works of art on loan for exhibition
      For purposes of this subchapter, works of art owned by a
    nonresident not a citizen of the United States shall not be deemed
    property within the United States if such works of art are -
        (1) imported into the United States solely for exhibition
      purposes,
        (2) loaned for such purposes, to a public gallery or museum, no
      part of the net earnings of which inures to the benefit of any
      private stockholder or individual, and
        (3) at the time of the death of the owner, on exhibition, or en
      route to or from exhibition, in such a public gallery or museum.

    (d) Stock in a RIC.--
       (1) In general.--For purposes of this subchapter, stock in 
        a regulated investment company (as defined in section 851) owned 
        by a nonresident not a citizen of the United States shall not be 
        deemed property within the United States in the proportion that, 
        at the end of the quarter of such investment company's taxable 
        year immediately preceding a decedent's date of death (or at 
        such other time as the Secretary may designate in regulations), 
        the assets of the investment company that were qualifying assets 
        with respect to the decedent bore to the total assets of the 
        investment company.
       (2) Qualifying assets.--For purposes of this subsection, 
        qualifying assets with respect to a decedent are assets that, if 
        owned directly by the decedent, would have been--
          (A) amounts, deposits, or debt obligations 
            described in subsection (b) of this section,
          (B) debt obligations described in the last 
            sentence of section 2104(c), or
          (C) other property not within the United States.
       (3) Termination.--This subsection shall not apply to 
        estates of decedents dying after December 31, 2007.

 

Sources

    (Aug. 16, 1954, ch. 736, 68A Stat. 397; Pub. L. 89-809, title I,
    Sec. 108(d), Nov. 13, 1966, 80 Stat. 1572; Pub. L. 98-369, div.  A,
    title I, Sec. 127(d), July 18, 1984, 98 Stat. 651; Pub. L. 100-647,
    title I, Sec. 1012(g)(4), Nov. 10, 1988, 102 Stat. 3501; Pub. L.
    103-66, title XIII, Sec. 13237(b), Aug. 10, 1993, 107 Stat. 508;
    Pub. L. 105-34, title XIII, Sec. 1304(a), Aug. 5, 1997, 111 Stat.
    1040.)
 

Miscellaneous

                                 AMENDMENTS
    2004 - Pub.L. 108-357 Sec 411(b).  Section 2105 (relating to property
    without the United States for estate tax purposes) is amended by adding
    at the end the following new subsection: "(d) Stock in a RIC.--"
    Effective Date.-- Estate tax treatment.--The amendment made by subsection 
    (b) shall apply to estates of decedents dying after December 31, 2004.

      1997 - Subsec. (b)(4). Pub. L. 105-34 added par. (4).
      1993 - Subsec. (b). Pub. L. 103-66 substituted ''this subchapter,
    the following shall not be deemed property within the United
    States'' for ''this subchapter'' in introductory provisions, added
    par. (3) and concluding provisions, and struck out former par. (3)
    and concluding provisions which read as follows:
        ''(3) debt obligations, if, without regard to whether a
      statement meeting the requirements of section 871(h)(4) has been
      received, any interest thereon would be eligible for the
      exemption from tax under section 871(h)(1) were such interest
      received by the decedent at the time of his death,
    shall not be deemed property within the United States.''
      1988 - Subsec. (b)(1). Pub. L. 100-647 substituted ''section
    871(i)(3), if any interest thereon would not be subject to tax by
    reason of section 871(i)(1)'' for ''section 861(c), if any interest
    thereon would be treated by reason of section 861(a)(1)(A) as
    income from sources without the United States''.
      1984 - Subsec. (b). Pub. L. 98-369, amended subsec. (b)
    generally, substituting ''Bank deposits and certain other debt
    obligations'' for ''Certain bank deposits, etc.'' in heading and
    '', if any interest thereon would be treated by reason of section
    861(a)(1)(A) as income from sources without the United States were
    such interest received by the decedent at the time of his death,''
    for ''if any interest thereon, were such interest received by the
    decedent at the time of his death, would be treated by reason of
    section 861(a)(1)(A) as income from sources without the United
    States, and'' in par. (1), inserting ''and'' after ''business,'' in
    par. (2), and adding par. (3).
      1966 - Subsec. (b). Pub. L. 89-809 substituted amounts described
    in section 861(c) if any interest thereon, were such interest
    received by the decedent at the time of his death, would be treated
    by reason of section 861(a)(1)(A) as income from sources without
    the United States, and deposits with a foreign branch of a domestic
    corporation or domestic partnership, if such branch is engaged in
    the commercial banking business for moneys deposited with any
    person carrying on the banking business by or for a nonresident not
    a citizen of the United States who was not engaged in business in
    the United States at the time of his death as the property not to
    be deemed property within the United States for purposes of this
    subchapter.
                      EFFECTIVE DATE OF 1997 AMENDMENT
      Section 1304(b) of Pub. L. 105-34 provided that: ''The amendment
    made by this section (amending this section) shall apply to estates
    of decedents dying after the date of the enactment of this Act
    (Aug. 5, 1997).''
                      EFFECTIVE DATE OF 1993 AMENDMENT
      Amendment by Pub. L. 103-66 applicable to the estates of
    decedents dying after Dec. 31, 1993, see section 13237(d) of Pub.
    L. 103-66, set out as a note under section 871 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 1984 AMENDMENT
      Amendment by Pub. L. 98-369 applicable to obligations issued
    after July 18, 1984, with respect to the estates of decedents dying
    after such date, see section 127(g)(2) of Pub. L. 98-369, set out
    as a note under section 871 of this title.
                      EFFECTIVE DATE OF 1966 AMENDMENT
      Amendment by Pub. L. 89-809 applicable with respect to estates of
    decedents dying after Nov. 13, 1966, see section 108(i) of Pub. L.
    89-809, set out as a note under section 2101 of this title.
 

References

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