§2102 — Credits against tax

6 cases·1 followed·1 overruled·4 cited17% support

(a)In general

The tax imposed by section 2101 shall be credited with the amounts determined in accordance with sections 2012 and 2013 (relating to gift tax and tax on prior transfers).

(b)Unified credit
(1)In general

A credit of $13,000 shall be allowed against the tax imposed by section 2101.

(2)Residents of possessions of the United States

In the case of a decedent who is considered to be a “nonresident not a citizen of the United States” under section 2209, the credit under this subsection shall be the greater of—

(A)

$13,000, or

(B)

that proportion of $46,800 which the value of that part of the decedent’s gross estate which at the time of his death is situated in the United States bears to the value of his entire gross estate wherever situated.

(3)Special rules
(A)Coordination with treaties

To the extent required under any treaty obligation of the United States, the credit allowed under this subsection shall be equal to the amount which bears the same ratio to the applicable credit amount in effect under section 2010(c) for the calendar year which includes the date of death as the value of the part of the decedent’s gross estate which at the time of his death is situated in the United States bears to the value of his entire gross estate wherever situated. For purposes of the preceding sentence, property shall not be treated as situated in the United States if such property is exempt from the tax imposed by this subchapter under any treaty obligation of the United States.

(B)Coordination with gift tax unified credit

If a credit has been allowed under section 2505 with respect to any gift made by the decedent, each dollar amount contained in paragraph (1) or (2) or subparagraph (A) of this paragraph (whichever applies) shall be reduced by the amount so allowed.

(4)Limitation based on amount of tax

The credit allowed under this subsection shall not exceed the amount of the tax imposed by section 2101.

(5)Application of other credits

For purposes of subsection (a), sections 2012 and 2013 shall be applied as if the credit allowed under this subsection were allowed under section 2010.

  • Treas. Reg. §Treas. Reg. §20.2102-1 Estates of nonresidents not citizens; credits against tax
  • Treas. Reg. §Treas. Reg. §20.2102-1(a) In general.
  • Treas. Reg. §Treas. Reg. §20.2102-1(b) Special limitation—(1) In general.
  • Treas. Reg. §Treas. Reg. §20.2102-1(c) Unified credit—(1) In general.

6 Citing Cases

2102 (2018)); National Archives and Records Administration Act of 1984, sec. 103(a), 98 Stat. at 2283. 50 Codified as amended at 44 U.S.C. sec. 1504 (Supp. IV 2017). 51 Codified as amended at 44 U.S.C. sec. 1507 (2012). 52 This provision has been described as “requiring filing as a condition precedent to validity”. James H. Ronald, “Publicatio

Section 2102 generally permits a credit of $13,000 against the estate tax imposed by section 2101. Decedent was a citizen of Pakistan at the time of his death. Therefore, since decedent was not a citizen of the United States, the proper computation of the estate tax liability depends upon whether decedent was a resident of the United States at the

United States v. Nicole Schuster · Cir.
Estate of Arnaud v. Commissioner 90 T.C. 649 · 1988
Estate of Horton v. Commissioner 47 T.C. 641 · 1967