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26 USCS § 2001 (2005)
§ 2001. Imposition and rate of tax [Caution: See prospective amendment note below.].
(a) Imposition. A tax is hereby imposed on the transfer of the taxable estate of every decedent who is a citizen or resident of the United States.
(b) Computation of tax. The tax imposed by this section shall be the amount equal to the excess (if any) of--
(1) a tentative tax computed under subsection (c) on the sum of--
(A) the amount of the taxable estate, and
(B) the amount of the adjusted taxable gifts, over
(2) the aggregate amount of tax which would have been payable under chapter 12 [26 USCS § § 2501 et seq.] with respect to gifts made by the decedent after December 31, 1976, if the provisions of subsection (c) (as in effect at the decedent's death) had been applicable at the time of such gifts.
For purposes of paragraph (1)(B), the term "adjusted taxable gifts" means the total amount of the taxable gifts (within the meaning of section 2503 [26 USCS § 2503]) made by the decedent after December 31, 1976, other than gifts which are includible in the gross estate of the decedent.
(c) Rate schedule.
(1) In general.
If the amount with respect
to which the tentative
tax to be computed is: the tentative tax is:
Not over $ 10,000 .......... 18 percent of such amount.
Over $ 10,000 but not $ 1,800, plus 20 percent of
over $ 20,000 the excess of such amount over $ 10,000.
Over $ 20,000 but not $ 3,800, plus 22 percent of
over $ 40,000 the excess of such amount over $ 20,000.
Over $ 40,000 but not $ 8,200, plus 24 percent of
over $ 60,000 the excess of such amount over $ 40,000.
Over $ 60,000 but not $ 13,000, plus 26 percent of
over $ 80,000 the excess of such amount over $ 60,000.
Over $ 80,000 but not $ 18,200, plus 28 percent of
over $ 100,000 the excess of such amount over $ 80,000.
Over $ 100,000 but not $ 23,800, plus 30 percent of
over $ 150,000 the excess of such amount over $ 100,000.
Over $ 150,000 but not $ 38,800, plus 32 percent of
over $ 250,000 the excess of such amount over $ 150,000.
Over $ 250,000 but not $ 70,800, plus 34 percent of
over $ 500,000 the excess of such amount over $ 250,000.
Over $ 500,000 but not $ 155,800, plus 37 percent of
over $ 750,000 the excess of such amount over $ 500,000.
Over $ 750,000 but not $ 248,300, plus 39 percent of
over $ 1,000,000 the excess of such amount over $ 750,000.
Over $ 1,000,000 but not $ 345,800 plus 41 percent of
over $ 1,250,000 the excess of such amount over $ 1,000,000.
Over $ 1,250,000 but not $ 448,300, plus 43 percent of
over $ 1,500,000 the excess of such amount over $ 1,250,000.
Over $ 1,500,000 but not $ 555,800, plus 45 percent of
over $ 2,000,000 the excess of such amount over $ 1,500,000.
Over $ 2,000,000 but not $ 780,800, plus 49 percent of
over $ 2,500,000 the excess of such amount over $ 2,000,000.
Over $ 2,500,000 ............ $ 1,025,800, plus 50% of the excess over $ 2,500,000.
(2) Phasedown of maximum rate of tax.
(A) In general. In the case of estates of decedents dying, and gifts made, in calendar years after 2002 and before 2010, the tentative tax under this subsection shall be determined by using a table prescribed by the Secretary (in lieu of using the table contained in paragraph (1)) which is the same as such table; except that--
(i) the maximum rate of tax for any calendar year shall be determined in the table under subparagraph (B), and
(ii) the brackets and the amounts setting forth the tax shall be adjusted to the extent necessary to reflect the adjustments under subparagraph (A).
(B) Maximum rate.
In calendar year: The maximum rate is:
2003 49 percent
2004 48 percent
2005 47 percent
2006 46 percent
2007, 2008, and 2009 45 percent.
(d) Adjustment for gift tax paid by spouse. For purposes of subsection (b)(2), if--
(1) the decedent was the donor of any gift one-half of which was considered under section 2513 [26 USCS § 2513] as made by the decedent's spouse, and
(2) the amount of such gift is includible in the gross estate of the decedent,
any tax payable by the spouse under chapter 12 [26 USCS § § 2501 et seq.] on such gift (as determined under section 2012(d) [26 USCS § 2012(d)]) shall be treated as a tax payable with respect to a gift made by the decedent.
(e) Coordination of sections 2513 and 2035. If--
(1) the decedent's spouse was the donor of any gift one-half of which was considered under section 2513 [26 USCS § 2513] as made by the decedent, and
(2) the amount of such gift is includible in the gross estate of the decedent's spouse by reason of section 2035 [26 USCS § 2035],
such gift shall not be included in the adjusted taxable gifts of the decedent for purposes of subsection (b)(1)(B), and the aggregate amount determined under subsection (b)(2) shall be reduced by the amount (if any) determined under subsection (d) which was treated as a tax payable by the decedent's spouse with respect to such gift.
(f) Valuation of gifts.
(1) In general. If the time has expired under section 6501 [26 USCS § 6501] within which a tax may be assessed under chapter 12 [26 USCS § § 2501 et seq.] (or under corresponding provisions of prior laws) on--
(A) the transfer of property by gift made during a preceding calendar period (as defined in section 2502(b) [26 USCS § 2502(b)]); or
(B) an increase in taxable gifts required under section 2701(d) [26 USCS § 2701(d)],
the value thereof shall, for purposes of computing the tax under this chapter [26 USCS § § 2001 et seq.], be the value as finally determined for purposes of chapter 12 [26 USCS § § 2501 et seq.].
(2) Final determination. For purposes of paragraph (1), a value shall be treated as finally determined for purposes of chapter 12 [26 USCS § § 2501 et seq.] if--
(A) the value is shown on a return under such chapter and such value is not contested by the Secretary before the expiration of the time referred to in paragraph (1) with respect to such return;
(B) in a case not described in subparagraph (A), the value is specified by the Secretary and such value is not timely contested by the taxpayer; or
(C) the value is determined by a court or pursuant to a settlement agreement with the Secretary.
For purposes of subparagraph (A), the value of an item shall be treated as shown on a return if the item is disclosed in the return, or in a statement attached to the return, in a manner adequate to apprise the Secretary of the nature of such item.
26 USCS § 2002 (2005)
§ 2002. Liability for payment.
The tax imposed by this chapter [26 USCS § § 2001 et seq.] shall be paid by the executor.
26 USCS § 2003 (2005)
§ 2003--2009. [Reserved for future use.]
26 USCS § 2010 (2005)
§ 2010. Unified credit against estate tax [Caution: See prospective amendment note below.].
(a) General rule. A credit of the applicable credit amount shall be allowed to the estate of every decedent against the tax imposed by section 2001 [26 USCS § 2001].
(b) Adjustment to credit for certain gifts made before 1977. The amount of the credit allowable under subsection (a) shall be reduced by an amount equal to 20 percent of the aggregate amount allowed as a specific exemption under section 2521 [26 USCS § 2521] (as in effect before its repeal by the Tax Reform Act of 1976) with respect to gifts made by the decedent after September 8, 1976.
(c) Applicable credit amount. For purposes of this section, the applicable credit amount is the amount of the tentative tax which would be determined under the rate schedule set forth in section 2001(c) [26 USCS § 2001(c)] if the amount with respect to which such tentative tax is to be computed were the applicable exclusion amount determined in accordance with the following table:
In the case of estates the applicable
of decedents dying during: exclusion amount is:
2002 and 2003 $ 1,000,000
2004 and 2005 $ 1,500,000
2006, 2007, and 2008 $ 2,000,000
2009 $ 3,500,000.
(d) Limitation based on amount of tax. The amount of the credit allowed by subsection (a) shall not exceed the amount of the tax imposed by section 2001 [26 USCS § 2001].
26 USCS § 2011 (2005)
§ 2011. Credit for State death taxes [Caution: This section does not apply to the estates of decedents dying after December 31, 2004, pursuant to subsec. (f) of this section. See also prospective amendment note below.].
(a) In general. The tax imposed by section 2001 [26 USCS § 2001] shall be credited with the amount of any estate, inheritance, legacy, or succession taxes actually paid to any State or the District of Columbia, in respect of any property included in the gross estate (not including any such taxes paid with respect to the estate of a person other than the decedent).
(b) Amount of credit.
(1) In general. Except as provided in paragraph (2), the credit allowed by this section shall not exceed the appropriate amount stated in the following table:
If the adjusted taxable The maximum tax credit
estate is: shall be:
Not over $ 90,000 8/10ths of 1% of the amount by which the adjusted taxable estate exceeds $ 40,000.
Over $ 90,000 but not $ 400 plus 1.6% of the excess
over $ 140,000. over $ 90,000.
Over $ 140,000 but not $ 1,200 plus 2.4% of the excess
over $ 240,000. over $ 140,000.
Over $ 240,000 but not $ 3,600 plus 3.2% of the excess
over $ 440,000. over $ 240,000.
Over $ 440,000 but not $ 10,000 plus 4% of the excess
over $ 640,000. over $ 440,000.
Over $ 640,000 but not $ 18,000 plus 4.8% of the
over $ 840,000. excess over $ 640,000.
Over $ 840,000 but not $ 27,600 plus 5.6% of the
over $ 1,040,000. excess over $ 840,000.
Over $ 1,040,000 but $ 38,800 plus 6.4% of the
not over $ 1,540,000. excess over $ 1,040,000.
Over $ 1,540,000 but $ 70,800 plus 7.2% of the
not over $ 2,040,000. excess over $ 1,540,000.
Over $ 2,040,000 but $ 106,800 plus 8% of the excess
not over $ 2,540,000. over $ 2,040,000.
Over $ 2,540,000 but $ 146,800 plus 8.8% of the
not over $ 3,040,000. excess over $ 2,540,000.
Over $ 3,040,000 but $ 190,800 plus 9.6% of the
not over $ 3,540,000. excess over $ 3,040,000.
Over $ 3,540,000 but $ 238,800 plus 10.4% of the
not over $ 4,040,000. excess over $ 3,540,000.
Over $ 4,040,000 but $ 290,800 plus 11.2% of the
not over $ 5,040,000. excess over $ 4,040,000.
Over $ 5,040,000 but $ 402,800 plus 12% of the
not over $ 6,040,000. excess over $ 5,040,000.
Over $ 6,040,000 but $ 522,800 plus 12.8% of the
not over $ 7,040,000. excess over $ 6,040,000.
Over $ 7,040,000 but $ 650,800 plus 13.6% of the
not over $ 8,040,000. excess over $ 7,040,000.
Over $ 8,040,000 but $ 786,800 plus 14.4% of the
not over $ 9,040,000. excess over $ 8,040,000.
Over $ 9,040,000 but $ 930,800 plus 15.2% of the
not over $ 10,040,000. excess over $ 9,040,000.
Over $ 10,040,000 $ 1,082,800 plus 16% of the excess over $ 10,040,000.
(2) Reduction of maximum credit.
(A) In general. In the case of estates of decedents dying after December 31, 2001, the credit allowed by this section shall not exceed the applicable percentage of the credit otherwise determined under paragraph (1).
(B) Applicable percentage.
In the case of estates the applicable
of decedents dying during: percentage is:
2002 75 percent
2003 50 percent
2004 25 percent.
(3) Adjusted taxable estate. For purposes of this section, the term "adjusted taxable estate" means the taxable estate reduced by $ 60,000.
(c) Period of limitations on credit. The credit allowed by this section shall include only such taxes as were actually paid and credit therefor claimed within 4 years after the filing of the return required by section 6018 [26 USCS § 6018], except that--
(1) If a petition for redetermination of a deficiency has been filed with the Tax Court within the time prescribed in section 6213(a) [26 USCS § 6213(a)], then within such 4-year period or before the expiration of 60 days after the decision of the Tax Court becomes final.
(2) If, under section 6161 or 6166 [26 USCS § 6161 or 6166], an extension of time has been granted for payment of the tax shown on the return, or of a deficiency, then within such 4-year period or before the date of the expiration of the period of the extension.
(3) If a claim for refund or credit of an overpayment of tax imposed by this chapter [26 USCS § § 2001 et seq.] has been filed within the time prescribed in section 6511 [26 USCS § 6511], then within such 4-year period or before the expiration of 60 days from the date of mailing by certified mail or registered mail by the Secretary to the taxpayer of a notice of the disallowance of any part of such claim, or before the expiration of 60 days after a decision by any court of competent jurisdiction becomes final with respect to a timely suit instituted upon such claim, whichever is later.
Refund based on the credit may (despite the provisions of sections 6511 and 6512 [26 USCS § § 6511 and 6512]) be made if claim therefor is filed within the period above provided. Any such refund shall be made without interest.
(d) Limitation in cases involving deduction under section 2053(d). In any case where a deduction is allowed under section 2053(d) [26 USCS § 2053(d)] for an estate, succession, legacy, or inheritance tax imposed by a State or the District of Columbia upon a transfer for public, charitable, or religious uses described in section 2055 or 2106(a)(2) [26 USCS § 2055 or 2106(a)(2)], the allowance of the credit under this section shall be subject to the following conditions and limitations:
(1) The taxes described in subsection (a) shall not include any estate, succession, legacy, or inheritance tax for which such deduction is allowed under section 2053(d) [26 USCS § 2053(d)].
(2) The credit shall not exceed the lesser of--
(A) the amount stated in subsection (b) on an adjusted taxable estate determined by allowing such deduction authorized by section 2053(d) [26 USCS § 2053(d)], or
(B) that proportion of the amount stated in subsection (b) on an adjusted taxable estate determined without regard to such deduction authorized by section 2053(d) [26 USCS § 2053(d)] as (i) the amount of the taxes described in subsection (a), as limited by the provisions of paragraph (1) of this subsection, bears to (ii) the amount of the taxes described in subsection (a) before applying the limitation contained in paragraph (1) of this subsection.
(3) If the amount determined under subparagraph (B) of paragraph (2) is less than the amount determined under subparagraph (A) of that paragraph, then for purposes of subsection (d) such lesser amount shall be the maximum credit provided by subsection (b).
(e) Limitation based on amount of tax. The credit provided by this section shall not exceed the amount of the tax imposed by section 2001 [26 USCS § 2001], reduced by the amount of the unified credit provided by section 2010 [26 USCS § 2010].
(f) Termination. This section shall not apply to the estates of decedents dying after December 31, 2004. |