Title 26, Internal Revenue CodeRelease 119-110
§2105 Property Without the United States
Title 26 › Subtitle B — Estate and Gift Taxes › CHAPTER 11 — ESTATE TAX › Subchapter B — Estates of Nonresidents Not Citizens › § 2105
Summary
Says that for this part of the tax code, some things owned by a nonresident who is not a U.S. citizen are not treated as property in the United States. Life insurance paid on the life of such a person is not counted. Certain bank deposits and debt are also not counted, including amounts covered by section 871(i)(3) if interest would be exempt under section 871(i)(1), deposits at a foreign branch of a domestic bank doing commercial banking, debt whose interest would be exempt under section 871(h)(1) (regardless of any statement under section 871(h)(5)), and original-issue-discount obligations that would not be connected to a U.S. trade or business under section 871(g)(1). If part of a debt’s interest would lose the exemption because of section 871(h)(4), the Secretary will treat that part of the debt’s value as U.S. property. Works of art owned by a nonresident are not treated as U.S. property when they are brought in only for exhibition, are on loan to a public gallery or museum whose net earnings do not go to private individuals, and are on display or in transit at the owner’s death. Stock in a regulated investment company (see section 851) is not treated as U.S. property to the extent the fund’s qualifying assets bear to its total assets, measured at the quarter end before the decedent’s death (or another time the Secretary picks). Qualifying assets are the items above, the debt noted in the last sentence of section 2104(c), or other property not in the United States. This rule does not apply to decedents dying after December 31, 2011.
Full Legal Text
Title 26, §2105
Internal Revenue Code, Source: USLM XML via OLRC
(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.
(d)Stock in a RIC
(1)In general
For purposes of this subchapter, stock in a regulated investment company (as defined in section 851) owned by a nonresident not a citizen of the United States shall not be deemed property within the United States in the proportion that, at the end of the quarter of such investment company’s taxable year immediately preceding a decedent’s date of death (or at such other time as the Secretary may designate in regulations), the assets of the investment company that were qualifying assets with respect to the decedent bore to the total assets of the investment company.
(2)Qualifying assets
For purposes of this subsection, qualifying assets with respect to a decedent are assets that, if owned directly by the decedent, would have been—
(A)amounts, deposits, or debt obligations described in subsection (b) of this section,
(B)debt obligations described in the last sentence of section 2104(c), or
(C)other property not within the United States.
(3)Termination
This subsection shall not apply to estates of decedents dying after December 31, 2011.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
2010—Subsec. (d)(3). Pub. L. 111–312 substituted “
December 31, 2011” for “
December 31, 2009”. 2008—Subsec. (d)(3). Pub. L. 110–343 substituted “
December 31, 2009” for “
December 31, 2007”. 2004—Subsec. (d). Pub. L. 108–357 added subsec. (d). 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.
Statutory Notes and Related Subsidiaries
Effective Date
of 2010 Amendment Pub. L. 111–312, title VII, § 726(b), Dec. 17, 2010, 124 Stat. 3317, provided that: “The amendment made by this section [amending this section] shall apply to estates of decedents dying after December 31, 2009.”
Effective Date
of 2008 Amendment Pub. L. 110–343, div. C, title II, § 207(b), Oct. 3, 2008, 122 Stat. 3865, provided that: “The amendment made by this section [amending this section] shall apply to decedents dying after December 31, 2007.”
Effective Date
of 2004 AmendmentAmendment by Pub. L. 108–357 applicable to estates of decedents dying after Dec. 31, 2004, see section 411(d)(2) of Pub. L. 108–357, set out as a note under section 871 of this title.
Effective Date
of 1997 Amendment Pub. L. 105–34, title XIII, § 1304(b), Aug. 5, 1997, 111 Stat. 1040, 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 AmendmentAmendment 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 AmendmentAmendment 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 AmendmentAmendment 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 AmendmentAmendment 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.
Reference
Citations & Metadata
Citation
26 U.S.C. § 2105
Title 26, Internal Revenue Code
Last Updated
Sep 22, 2026
Release point: 119-110