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26 U.S.C. § 2107 — Expatriation to avoid tax
Federal law — U.S. Code and appendices · legal_authorities
**(a) Treatment of expatriates** A tax computed in accordance with the table contained in section 2001 is hereby imposed on the transfer of the taxable estate, determined as provided in section 2106, of every decedent nonresident not a citizen of the United States if the date of death occurs during a taxable year with respect to which the decedent is subject to tax under section 877(b).
**(b) Gross estate** For purposes of the tax imposed by subsection (a), the value of the gross estate of every decedent to whom subsection (a) applies shall be determined as provided in section 2103, except that—
(1) if such decedent owned (within the meaning of section 958(a)) at the time of his death 10 percent or more of the total combined voting power of all classes of stock entitled to vote of a foreign corporation, and
(2) if such decedent owned (within the meaning of section 958(a)), or is considered to have owned (by applying the ownership rules of section 958(b)), at the time of his death, more than 50 percent of—
(A) the total combined voting power of all classes of stock entitled to vote of such corporation, or
(B) the total value of the stock of such corporation,
then that proportion of the fair market value of the stock of such foreign corporation owned (within the meaning of section 958(a)) by such decedent at the time of his death, which the fair market value of any assets owned by such foreign corporation and situated in the United States, at the time of his death, bears to the total fair market value of all assets owned by such foreign corporation at the time of his death, shall be included in the gross estate of such decedent. For purposes of the preceding sentence, a decedent shall be treated as owning stock of a foreign corporation at the time of his death if
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Stable record: federal_law:legal_authorities:record_usc_3aba0dd8f755cf7f73684e0d
Source file: Laws/federal/codes/united-states-code/title-26/section-2107-expatriation-to-avoid-tax--e11de1be09.md
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Source location: Title 26, Chapter 11, § 2107; chapter-011-estate-tax.md
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**(a) Treatment of expatriates** A tax computed in accordance with the table contained in section 2001 is hereby imposed on the transfer of the taxable estate, determined as provided in section 2106, of every decedent nonresident not a citizen of the United States if the date of death occurs during a taxable year with respect to which the decedent is subject to tax under section 877(b).
**(b) Gross estate** For purposes of the tax imposed by subsection (a), the value of the gross estate of every decedent to whom subsection (a) applies shall be determined as provided in section 2103, except that—
(1) if such decedent owned (within the meaning of section 958(a)) at the time of his death 10 percent or more of the total combined voting power of all classes of stock entitled to vote of a foreign corporation, and
(2) if such decedent owned (within the meaning of section 958(a)), or is considered to have owned (by applying the ownership rules of section 958(b)), at the time of his death, more than 50 percent of—
(A) the total combined voting power of all classes of stock entitled to vote of such corporation, or
(B) the total value of the stock of such corporation,
then that proportion of the fair market value of the stock of such foreign corporation owned (within the meaning of section 958(a)) by such decedent at the time of his death, which the fair market value of any assets owned by such foreign corporation and situated in the United States, at the time of his death, bears to the total fair market value of all assets owned by such foreign corporation at the time of his death, shall be included in the gross estate of such decedent. For purposes of the preceding sentence, a decedent shall be treated as owning stock of a foreign corporation at the time of his death if, at the time of a transfer, by trust or otherwise, within the meaning of sections 2035 to 2038, inclusive, he owned such stock.
**(c) Credits**
(1) **Unified credit**
(A) *In general* — A credit of $13,000 shall be allowed against the tax imposed by subsection (a).
(B) *Limitation based on amount of tax* — The credit allowed under this paragraph shall not exceed the amount of the tax imposed by subsection (a).
(2) **Credit for foreign death taxes**
(A) *In general* — The tax imposed by subsection (a) 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 which is included in the gross estate solely by reason of subsection (b).
(B) *Limitation on credit* — The credit allowed by subparagraph (A) for such taxes paid to a foreign country shall not exceed the lesser of—
(i) the amount which bears the same ratio to the amount of such taxes actually paid to such foreign country as the value of the property subjected to such taxes by such foreign country and included in the gross estate solely by reason of subsection (b) bears to the value of all property subjected to such taxes by such foreign country, or
(ii) such property’s proportionate share of the excess of—
(I) the tax imposed by subsection (a), over
(II) the tax which would be imposed by section 2101 but for this section.
(C) *Proportionate share* — In the case of property which is included in the gross estate solely by reason of subsection (b), such property’s proportionate share is the percentage which the value of such property bears to the total value of all property included in the gross estate solely by reason of subsection (b).
(3) **Other credits** — The tax imposed by subsection (a) shall be credited with the amounts determined in accordance with subsections (a) and (b) of section 2102. For purposes of subsection (a) of section 2102, sections 2012 and 2013 shall be applied as if the credit allowed under paragraph (1) were allowed under section 2010.
**(d) Burden of proof** If the Secretary establishes that it is reasonable to believe that an individual’s loss of United States citizenship would, but for this section, result in a substantial reduction in the estate, inheritance, legacy, and succession taxes in respect of the transfer of his estate, the burden of proving that such loss of citizenship did not have for one of its principal purposes the avoidance of taxes under this subtitle or subtitle A shall be on the executor of such individual’s estate.
**(e) Cross reference** For comparable treatment of long-term lawful permanent residents who ceased to be taxed as residents, see section 877(e).
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Imposition** Except as provided in section 2107, a tax is hereby imposed on the transfer of the taxable estate (determined as provided in section 2106) of every decedent nonresident not a citizen 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 section 2001(c) on the sum of—
(A) the amount of the taxable estate, and
(B) the amount of the adjusted taxable gifts, over
(2) a tentative tax computed under section 2001(c) on the amount of the adjusted taxable gifts.
**(c) Adjustments for taxable gifts**
(1) **Adjusted taxable gifts defined** — For purposes of this section, the term “adjusted taxable gifts” means the total amount of the taxable gifts (within the meaning of section 2503 as modified by section 2511) made by the decedent after December 31, 1976, other than gifts which are includible in the gross estate of the decedent.
(2) **Adjustment for certain gift tax** — For purposes of this section, the rules of section 2001(d) shall apply.
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 2101
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Federal law — U.S. Code and appendices · legal_authorities
**(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 modifications described in subsection (g) 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** If the amount with respect to which the tentative tax to be computed is:The tentative tax is: Not over $10,00018 percent of such amount. Over $10,000 but not over $20,000$1,800, plus 20 percent of the excess of such amount over $10,000. Over $20,000 but not over $40,000$3,800, plus 22 percent of the excess of such amount over $20,000. Over $40,000 but not over $60,000$8,200 plus 24 percent of the excess of such amount over $40,000. Over $60,000 but not over $80,000$13,000, plus 26 percent of the excess of such amount over $60,000. Over $80,000 but not over $100,000$18,200, plus 28 percent of the excess of such amount over $80,000. Over $100,000 but not over $150,000$23,800, plus 30 percent of the excess of such amount over $100,000. Over $150,000 but not over $250,000$38,800, plus 32 percent of the excess of such amount ove
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 2001
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Limitation based on amount of tax** The aggregate amount of credits allowed by this subpart for the taxable year shall not exceed the sum of—
(1) the taxpayer’s regular tax liability for the taxable year reduced by the foreign tax credit allowable under section 27, and
(2) the tax imposed by section 55(a) for the taxable year.
**(b) Regular tax liability** For purposes of this part—
(1) **In general** — The term “regular tax liability” means the tax imposed by this chapter for the taxable year.
(2) **Exception for certain taxes** — For purposes of paragraph (1), any tax imposed by any of the following provisions shall not be treated as tax imposed by this chapter:
(A) section 55 (relating to minimum tax),
(B) section 59A (relating to base erosion and anti-abuse tax),
(C) subsection (m)(5)(B), (q), (t), or (v) of section 72 (relating to additional taxes on certain distributions),
(D) section 143(m) (relating to recapture of proration of Federal subsidy from use of mortgage bonds and mortgage credit certificates),
(E) section 530(d)(4) (relating to additional tax on certain distributions from Coverdell education savings accounts),
(F) section 531 (relating to accumulated earnings tax),
(G) section 541 (relating to personal holding company tax),
(H) section 1351(d)(1) (relating to recoveries of foreign expropriation losses),
(I) section 1374 (relating to tax on certain built-in gains of S corporations),
(J) section 1375 (relating to tax imposed when passive investment income of corporation having subchapter C earnings and profits exceeds 25 percent of gross receipts),
(K) subparagraph (A) of section 7518(g)(6) (relating to nonqualified withdrawals from capital construction funds taxed at highest marginal rate),
(L) sections 87
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 26
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Treatment of expatriates**
(1) **In general** — Every nonresident alien individual to whom this section applies and who, within the 10-year period immediately preceding the close of the taxable year, lost United States citizenship shall be taxable for such taxable year in the manner provided in subsection (b) if the tax imposed pursuant to such subsection (after any reduction in such tax under the last sentence of such subsection) exceeds the tax which, without regard to this section, is imposed pursuant to section 871.
(2) **Individuals subject to this section** — This section shall apply to any individual if—
(A) the average annual net income tax (as defined in section 38(c)(1)) of such individual for the period of 5 taxable years ending before the date of the loss of United States citizenship is greater than $124,000,
(B) the net worth of the individual as of such date is $2,000,000 or more, or
(C) such individual fails to certify under penalty of perjury that he has met the requirements of this title for the 5 preceding taxable years or fails to submit such evidence of such compliance as the Secretary may require.
In the case of the loss of United States citizenship in any calendar year after 2004, such $124,000 amount shall be increased by an amount equal to such dollar amount multiplied by the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting “2003” for “1992” in subparagraph (B) thereof. Any increase under the preceding sentence shall be rounded to the nearest multiple of $1,000.
**(b) Alternative tax** A nonresident alien individual described in subsection (a) shall be taxable for the taxable year as provided in section 1 or 55, except that—
(1) the gross income shall include only the gross inc
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 877
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Federal law — U.S. Code and appendices · legal_authorities
**(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 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 d
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 2012
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Federal law — U.S. Code and appendices · legal_authorities
Page 2624
TITLE 26—INTERNAL REVENUE CODE
§ 2107
the amendments made by section 5033 of Pub. L. 100–647
shall not apply to the extent such amendments would
be inconsistent with the provisions of such treaty re-
lating to estate, inheritance, or gift tax marital deduc-
tions, but that in the case of the estate of an individual
dying before the date 3 years after Dec. 19, 1989, or a
gift by an individual before the date 3 years after Dec.
19, 1989, the requirement of the preceding provision
that the individual not be a citizen or resident of the
United States shall not apply, see section 7815(d)(14) of
Pub. L. 101–239, set out as a note under section 2056 of
this title.
§ 2107. Expatriation to avoid tax
(a) Treatment of expatriates
A tax computed in accordance with the table
contained in section 2001 is hereby imposed on
the transfer of the taxable estate, determined as
provided in section 2106, of every decedent non-
resident not a citizen of the United States if the
date of death occurs during a taxable year with
respect to which the decedent is subject to tax
under section 877(b).
(b) Gross estate
For purposes of the tax imposed by subsection
(a), the value of the gross estate of every dece-
dent to whom subsection (a) applies shall be de-
termined as provided in section 2103, except
that—
(1) if such decedent owned (within the mean-
ing of section 958(a)) at the time of his death
10 percent or more of the total combined vot-
ing power of all classes of stock entitled to
vote of a foreign corporation, and
(2) if such decedent owned (within the mean-
ing of section 958(a)), or is considered to have
owned (by applying the ownership rules of sec-
tion 958(b)), at the time of his death, more
than 50 percent of—
(A) the total combined voting power
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 2107
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