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.)
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.
