26 U.S.C. § 2052 — Untitled legal text

Page 2599 TITLE 26—INTERNAL REVENUE CODE § 2053 gross estate the deductions provided for in this part. (Aug. 16, 1954, ch. 736, 68A Stat. 388; Pub. L. 95–600, title VII, § 702(r)(2), Nov. 6, 1978, 92 Stat. 2938.) Editorial Notes AMENDMENTS 1978—Pub. L. 95–600 struck out ‘‘exemption and’’ after ‘‘gross estate the’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1978 AMENDMENT Pub. L. 95–600, title VII, § 702(r)(5), Nov. 6, 1978, 92 Stat. 2939, provided that: ‘‘The amendments made by this subsection [amending this section and sections 1016, 6324B, and 6698A of this title] shall apply to es- tates of decedents dying after December 31, 1976.’’ [§ 2052. Repealed. Pub. L. 94–455, title XX, § 2001(a)(4), Oct. 4, 1976, 90 Stat. 1848] Section, act Aug. 16, 1954, ch. 736, 68A Stat. 389, pro- vided for an exemption of $60,000 to be deducted from gross estate in determining value of taxable estate. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal applicable to estates of decedents dying after Dec. 31, 1976, see section 2001(d)(1) of Pub. L. 94–455, set out as an Effective Date of 1976 Amendment note under section 2001 of this title. § 2053. Expenses, indebtedness, and taxes (a) General rule For purposes of the tax imposed by section 2001, the value of the taxable estate shall be de- termined by deducting from the value of the gross estate such amounts— (1) for funeral expenses, (2) for administration expenses, (3) for claims against the estate, and (4) for unpaid mortgages on, or any indebted- ness in respect of, property where the value of the decedent’s interest therein, undiminished by such mortgage or indebtedness, is included in the value of the gross estate, as are allowable by the laws of the jurisdiction, whether within or without the United States, under which the estate is being administered. (b) Other administration expenses Subject to the limitations in paragraph (1) of subsection (c), there shall be deducted in deter- mining the taxable estate amounts representing expenses incurred in administering property not subject to claims which is included in the gross estate to the same extent such amounts would be allowable as a deduction under subsection (a) if such property were subject to claims, and such amounts are paid before the expiration of the period of limitation for assessment provided in section 6501. (c) Limitations (1) Limitations applicable to subsections (a) and (b) (A) Consideration for claims The deduction allowed by this section in the case of claims against the estate, unpaid mortgages, or any indebtedness shall, when founded on a promise or agreement, be lim- ited to the extent that they were contracted bona fide and for an adequate and full con- sideration in money or money’s worth; ex- cept that in any case in which any such claim is founded on a promise or agreement of the decedent to make a contribution or gift to or for the use of any donee described in section 2055 for the purposes specified therein, the deduction for such claims shall not be so limited, but shall be limited to the extent that it would be allowable as a deduc- tion under section 2055 if such promise or agreement constituted a bequest. (B) Certain taxes Any income taxes on income received after the death of the decedent, or property taxes not accrued before his death, or any estate, succession, legacy, or inheritance taxes, shall not be deductible under this section. (C) Certain claims by remaindermen No deduction shall be allowed under this section for a claim against the estate by a remainderman relating to any property de- scribed in section 2044. (D) Section 6166 interest No deduction shall be allowed under this section for any interest payable under sec- tion 6601 on any unpaid portion of the tax imposed by section 2001 for the period during which an extension of time for payment of such tax is in effect under section 6166. (2) Limitations applicable only to subsection (a) In the case of the amounts described in sub- section (a), there shall be disallowed the amount by which the deductions specified therein exceed the value, at the time of the de- cedent’s death, of property subject to claims, except to the extent that such deductions rep- resent amounts paid before the date prescribed for the filing of the estate tax return. For pur- poses of this section, the term ‘‘property sub- ject to claims’’ means property includible in the gross estate of the decedent which, or the avails of which, would under the applicable law, bear the burden of the payment of such deductions in the final adjustment and settle- ment of the estate, except that the value of the property shall be reduced by the amount of the deduction under section 2054 attributable to such property. (d) Certain foreign death taxes (1) In general Notwithstanding the provisions of sub- section (c)(1)(B), for purposes of the tax im- posed by section 2001, the value of the taxable estate may be determined, if the executor so elects before the expiration of the period of limitation for assessment provided in section 6501, by deducting from the value of the gross estate the amount (as determined in accord- ance with regulations prescribed by the Sec- retary) of any estate, succession, legacy, or in- heritance tax imposed by and actually paid to any foreign country, in respect of any prop-