§2014 Credit for foreign death taxes

Summary

Lets you reduce the U.S. estate tax (the tax under section 2001) by the amount of estate, inheritance, legacy, or succession taxes actually paid to a foreign country on property that is located in that foreign country and is part of the decedent’s gross estate. The credit for any one foreign tax is limited to the part of that tax that matches the value of the estate property in that foreign country that was taxed and included in the gross estate. The total foreign-tax credit for all such taxes is limited to the portion of the U.S. estate tax (after subtracting credits under sections 2010 and 2012) that matches the value of estate property located in and taxed by that foreign country. Values for the single-tax limit use the foreign country’s valuation. Values for the total limit use U.S. estate valuations, reduced to reflect charitable and marital deductions under sections 2055 and 2056 as the Treasury regulations require. You must prove the tax was paid, the amount and date of each payment, and the description and value of the property and give any other information needed to verify the credit. The claim must be made within 4 years after filing the return required by section 6018, except if a timely Tax Court petition under section 6213(a) or an extension under section 6161 changes that time as described above. If a deduction is allowed under section 2053(d) for foreign taxes paid on property transferred for public, charitable, or religious uses under section 2055, that property is excluded when measuring the credit. Each U.S. possession counts as a foreign country. The President may make findings when a foreign country does not give similar credits to U.S. citizens there, does not act when asked, and a reciprocal rule is in the public interest.