I.R.C. § 7520(a) General Rule —
For purposes of this title, the value of any annuity, any interest for life or a
term of years, or any remainder or reversionary interest shall be determined--
I.R.C. § 7520(a)(1) —
under tables prescribed by the Secretary, and
I.R.C. § 7520(a)(2) —
by using an interest rate (rounded to the nearest 2/10ths of 1 percent) equal to
120 percent of the Federal midterm rate in effect under section 1274(d)(1) for the month in which the valuation date falls.
If an income, estate, or gift tax charitable contribution is allowable for any part
of the property transferred, the taxpayer may elect to use such Federal midterm rate
for either of the 2 months preceding the month in which the valuation date falls
for purposes of paragraph (2). In the case of transfers of more than 1 interest in the same property with respect
to which the taxpayer may use the same rate under paragraph (2), the taxpayer shall use the same rate with respect to each such interest.
I.R.C. § 7520(b) Section Not To Apply For Certain Purposes —
This section shall not apply for purposes of part I of subchapter D of chapter 1
or any other provision specified in regulations.
I.R.C. § 7520(c) Tables
I.R.C. § 7520(c)(1) In General —
The tables prescribed by the Secretary for purposes of subsection (a) shall
contain valuation factors for a series of interest rate categories.
I.R.C. § 7520(c)(2) Revision For Recent Mortality Charges —
The Secretary shall revise the initial tables prescribed for purposes of subsection
(a) to take into account the most recent mortality experience available as of the time
of such revision. Such tables shall be revised not less frequently than once each
10 years to take into account the most recent mortality experience available as of
the time of the revision.
I.R.C. § 7520(d) Valuation Date —
For purposes of this section, the term “valuation date” means the date as of which
the valuation is made.
I.R.C. § 7520(e) Tables To Include Formulas —
For purposes of this section, the term “tables”
includes formulas.
(Added by Pub. L. 100-647, title V, Sec. 5031(a), Nov. 10, 1988, 102 Stat. 3668; amended by Pub. L. 113-295, Div. A, title II, Sec. 221(a)(118), Dec. 19, 2014, 128 Stat. 4010.)
BACKGROUND NOTES
AMENDMENTS
2014 - Subsec. (c)(2)-(3). Pub. L. 113-295, Div. A, Sec. 221(a)(118)(A), amended subsec. (c) by striking par. (2) and by redesignating
par.
(3) as par. (2). Before it was struck, it read as follows:
“(2) Initial Table.—Not later than the day 3 months after the date of the enactment
of this section, the Secretary shall prescribe initial tables for purposes of subsection
(a). Such tables may be based on the same mortality experience as used for purposes
of section 2031 on the date of the enactment of this section.”
Subsec. (c)(2). Pub. L. 113-295, Div. A, Sec. 221(a)(118)(B), amended par. (2), as redesignated, by substituting
“The” for “Not later than December 31, 1989, the” and by striking “thereafter”
in the last sentence.
EFFECTIVE DATE OF 2014 AMENDMENTS
Amendments by Pub. L. 113-295, Div. A, Sec. 221(a)(118), effective on the date of the enactment of this Act [Enacted:
Dec. 19, 2014].
Section 221(b)(2) of Pub. L. 113-295, Div. A, provided the following Savings Provision:
“(2)
SAVINGS PROVISION.—If—
“(A)
any provision amended or repealed by the amendments made by this section applied to—
“(i)
any transaction occurring before the date of the enactment of this Act [Enacted: Dec.
19, 2014],
“(ii)
any property acquired before such date of enactment, or
“(iii)
any item of income, loss, deduction, or credit taken into account before such date
of enactment, and
“(B)
the treatment of such transaction, property, or item under such provision would (without
regard to the amendments or repeals made by this section)
affect the liability for tax for periods ending after date of enactment, nothing in
the amendments or repeals made by this section shall be construed to affect the treatment
of such transaction, property, or item for purposes of determining liability for tax
for periods ending after such date of enactment.”
EFFECTIVE DATE
Section 5031(c) of Pub. L. 100-647 provided that: “The amendments made by this section (enacting this section)
shall apply in cases where the date as of which the valuation is to be made occurs
on or after the 1st day of the 6th calendar month beginning after the date of the
enactment of this Act [Enacted: Nov. 10, 1988].”
PRIOR PROVISIONS
Another section 7520 was renumbered section 7521 of this title.
