
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC2105]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                    Subtitle B--Estate and Gift Taxes
 
                         CHAPTER 11--ESTATE TAX
 
           Subchapter B--Estates of Nonresidents Not Citizens
 
Sec. 2105. Property without the United States


(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.

(b) Bank deposits and certain other debt obligations

    For purposes of this subchapter, the following shall not be deemed 
property within the United States--
        (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,
        (2) deposits with a foreign branch of a domestic corporation or 
    domestic partnership, if such branch is engaged in the commercial 
    banking business,
        (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
        (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.

(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--
        (1) imported into the United States solely for exhibition 
    purposes,
        (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
        (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.

(Aug. 16, 1954, ch. 736, 68A Stat. 397; Pub. L. 89-809, title I, 
Sec. 108(d), Nov. 13, 1966, 80 Stat. 1572; Pub. L. 98-369, div. A, title 
I, Sec. 127(d), July 18, 1984, 98 Stat. 651; Pub. L. 100-647, title I, 
Sec. 1012(g)(4), Nov. 10, 1988, 102 Stat. 3501; Pub. L. 103-66, title 
XIII, Sec. 13237(b), Aug. 10, 1993, 107 Stat. 508; Pub. L. 105-34, title 
XIII, Sec. 1304(a), Aug. 5, 1997, 111 Stat. 1040.)


                               Amendments

    1997--Subsec. (b)(4). Pub. L. 105-34 added par. (4).
    1993--Subsec. (b). Pub. L. 103-66 substituted ``this subchapter, the 
following shall not be deemed property within the United States'' for 
``this subchapter'' in introductory provisions, added par. (3) and 
concluding provisions, and struck out former par. (3) and concluding 
provisions which 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 1997 Amendment

    Section 1304(b) of Pub. L. 105-34 provided that: ``The amendment 
made by this section [amending this section] shall apply to estates of 
decedents dying after the date of the enactment of this Act [Aug. 5, 
1997].''


                    Effective Date of 1993 Amendment

    Amendment by Pub. L. 103-66 applicable to the estates of decedents 
dying after Dec. 31, 1993, see section 13237(d) of Pub. L. 103-66, set 
out as a note under section 871 of this title.


                    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.

                  Section Referred to in Other Sections

    This section is referred to in section 2104 of this title.
