Internal Revenue Code:Sec. 2014. Credit for foreign death taxes

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Contents


Location in Internal Revenue Code


     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
       

Statute

    Sec. 2014. Credit for foreign death taxes
 
    (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.
 

Sources

    (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.)
 

Amendment of Section

                       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.
 

Miscellaneous

                                 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.
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 2013, 2015, 2016, 2053,
    2056A, 6511, 6612 of this title.
 

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