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Internal Revenue Code, § 2105. Property Without The United States

I.R.C. § 2105(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.
I.R.C. § 2105(b) Bank Deposits And Certain Other Debt Obligations
For purposes of this subchapter, the following shall not be deemed property within the United States—
I.R.C. § 2105(b)(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,
I.R.C. § 2105(b)(2)
deposits with a foreign branch of a domestic corporation or domestic partnership, if such branch is engaged in the commercial banking business,
I.R.C. § 2105(b)(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
I.R.C. § 2105(b)(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.
I.R.C. § 2105(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—
I.R.C. § 2105(c)(1)
imported into the United States solely for exhibition purposes,
I.R.C. § 2105(c)(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
I.R.C. § 2105(c)(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.
I.R.C. § 2105(d) Stock In A RIC
I.R.C. § 2105(d)(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.
I.R.C. § 2105(d)(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—
I.R.C. § 2105(d)(2)(A)
amounts, deposits, or debt obligations described in subsection (b) of this section,
I.R.C. § 2105(d)(2)(B)
debt obligations described in the last sentence of section 2104(c), or
I.R.C. § 2105(d)(2)(C)
other property not within the United States.
I.R.C. § 2105(d)(3) Termination
This subsection shall not apply to estates of decedents dying after December 31, 2011.
(Aug. 16, 1954, ch. 736, 68A Stat. 397; Nov. 13, 1966, Pub. L. 89-809, title I, 108(d), 80 Stat. 1572; July 18, 1984, Pub. L. 98-369, div. A, title I, 127(d), 98 Stat. 651; Nov. 10, 1988, Pub. L. 100-647, title I, 1012(g)(4), 102 Stat. 3501; Pub. L. 103-66, title XIII, Sec. 13237(b), Aug. 10, 1993, 107 Stat. 312; Pub. L. 105-34, title XIII, Sec. 1304(a), Aug. 5, 1997, 111 Stat 788; Pub. L. 108-357, title IV, Sec. 411(b), Oct. 22, 2004, 118 Stat. 1418; Pub. L. 110-343, div. C, title II, Sec. 207(a), Oct. 3, 2008, 122 Stat. 3765; Pub. L. 111-312, title VII, Sec. 726, Dec. 17, 2010, 124 Stat. 3296.)
BACKGROUND NOTES
AMENDMENTS
2010 - Subsec. (d)(3). Pub. L. 111-312, Sec. 726(a), amended par. (3) by substituting “December 31, 2011” for “December 31, 2009”.
2008 - Subsec. (d)(3). Pub. L. 110-343, Div. C, Sec. 207(a), amended par. (3) by substituting “December 31, 2009” for “December 31, 2007”.
2004 - Subsec. (d). Pub. L. 108-357, Sec. 411(b), added subsec. (d).
1997 - Subsec. (b)(2). Pub. L. 105-34, Sec. 1304(a), struck “and” at the end of par. (2).
Subsec. (b)(3). Pub. L. 105-34, Sec. 1304(a), substituted “, and” for “.” at the end of par. (3).
Subsec. (b)(4). Pub. L. 105-34, Sec. 1304(a), added par. (4).
1993 - Subsec. (b). Pub. L. 103-66, Sec. 13237(b), amended subsec. (b) by striking “this subchapter” in the material preceding paragraph (1) and inserting “this subchapter, the following shall not be deemed property within the United States”.
Subsec. (b)(3). Pub. L. 103-66, Sec. 13237(b), struck par. (3) and the material following it and added a new par. (3) and a flush sentence. Before being struck, it 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 2010 AMENDMENT
Amendment by Sec. 726(a) of Pub. L. 111-312 effective for estates of decedents dying after December 31, 2009.
EFFECTIVE DATE OF 2008 AMENDMENT
Amendment by Sec. 207(a) of Pub. L. 110-343, Div. C, effective for decedents dying after December 31, 2007.
EFFECTIVE DATE OF 2004 AMENDMENT
Amendment by Sec. 411(b) of Pub. L. 108-357 applicable to estates of decedents dying after December 31, 2004.
EFFECTIVE DATE OF 1997 AMENDMENTS
Amendments by Sec. 1304(a) of Pub. L. 105-34 applicable to estates of decedents dying after the date of the enactment of this Act [Aug. 5, 1997].
EFFECTIVE DATE OF 1993 AMENDMENTS
Amendments by Sec. 13237(b) of Pub. L. 103-66 applicable to estates of decedents dying after December 31, 1993.
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.
REINSTATEMENT OF ESTATE TAX; REPEAL OF CARRYOVER BASIS
Section 301 of Pub. L. 111-312 provided:
“(a) IN GENERAL.—Each provision of law amended by subtitle A or E of title V of the Economic Growth and Tax Relief Reconciliation Act of 2001 is amended to read as such provision would read if such subtitle had never been enacted.
“(b) CONFORMING AMENDMENT.—On and after January 1, 2011, paragraph (1) of section 2505(a) of the Internal Revenue Code of 1986 is amended to read as such paragraph would read if section 521(b)(2) of the Economic Growth and Tax Relief Reconciliation Act of 2001 had never been enacted.
“(c) SPECIAL ELECTION WITH RESPECT TO ESTATES OF DECEDENTS DYING IN 2010.—Notwithstanding subsection (a), in the case of an estate of a decedent dying after December 31, 2009, and before January 1, 2011, the executor (within the meaning of section 2203 of the Internal Revenue Code of 1986) may elect to apply such Code as though the amendments made by subsection (a) do not apply with respect to chapter 11 of such Code and with respect to property acquired or passing from such decedent (within the meaning of section 1014(b) of such Code). Such election shall be made at such time and in such manner as the Secretary of the Treasury or the Secretary's delegate shall provide. Such an election once made shall be revocable only with the consent of the Secretary of the Treasury or the Secretary's delegate. For purposes of section 2652(a)(1) of such Code, the determination of whether any property is subject to the tax imposed by such chapter 11 shall be made without regard to any election made under this subsection.
“(d) EXTENSION OF TIME FOR PERFORMING CERTAIN ACTS.—
“ (1) ESTATE TAX.—In the case of the estate of a decedent dying after December 31, 2009, and before the date of the enactment of this Act, the due date for—
“(A) filing any return under section 6018 of the Internal Revenue Code of 1986 (including any election required to be made on such a return) as such section is in effect after the date of the enactment of this Act without regard to any election under subsection (c),
“(B) making any payment of tax under chapter 11 of such Code, and
“(C) making any disclaimer described in section 2518(b) of such Code of an interest in property passing by reason of the death of such decedent, shall not be earlier than the date which is 9 months after the date of the enactment of this Act.
“(2) GENERATION-SKIPPING TAX.—In the case of any generation-skipping transfer made after December 31, 2009, and before the date of the enactment of this Act, the due date for filing any return under section 2662 of the Internal Revenue Code of 1986 (including any election required to be made on such a return) shall not be earlier than the date which is 9 months after the date of the enactment of this Act.
“(e) EFFECTIVE DATE.—Except as otherwise provided in this section, the amendments made by this section shall apply to estates of decedents dying, and transfers made, after December 31, 2009.”
TERMINATION
Section 501(a) (Estate Tax Repeal) of Pub. L. 107-16 added Code Sec. 2210, which states that chapter 11 of subtitle B shall not apply to the estates of decedents dying after December 31, 2009.
Note, however, that Section 901 (Sunset of Provisions of Act) of Pub. L. 107-16, as amended by Pub. L. 107-358 and Pub. L. 111-312, and struck by Pub. L. 112-240, Sec. 101(a)(1) (effective for taxable, plan, or limitation years beginning after Dec. 31, 2012, and estates of decedents dying, gifts made, or generation skipping transfers after Dec. 31, 2012), provided that:
“(a) IN GENERAL.--All provisions of, and amendments made by, this Act shall not apply--
“(1) to taxable, plan, or limitation years beginning after December 31, 2012, or
“(2) in the case of title V, to estates of decedents dying, gifts made, or generation skipping transfers, after December 31, 2012.
“(b) APPLICATION OF CERTAIN LAWS.--The Internal Revenue Code of 1986 and the Employee Retirement Income Security Act of 1974 shall be applied and administered to years, estates, gifts, and transfers described in subsection (a) as if the provisions and amendments described in subsection (a) had never been enacted.
“(c) EXCEPTION.-Subsection (a) shall not apply to section 803 (relating to no federal income tax on restitution received by victims of the Nazi regime or their heirs or estates).”