Title 26 — Internal Revenue CodeRelease 119-73not60
§2105 Property Without the United States
Title 26 › Subtitle Subtitle B— Estate and Gift Taxes › Chapter 11— ESTATE TAX › Subchapter B— Estates of Nonresidents Not Citizens › § 2105
Summary
Excludes certain assets owned by a nonresident, noncitizen from being treated as property inside the United States for estate tax purposes. Life insurance on the life of such a person is not treated as U.S. property. Also not treated as U.S. property are certain financial items: amounts whose interest would not have been taxed if the decedent had received it before death; deposits at a foreign branch of a U.S. bank that does commercial banking; certain debt obligations that would qualify for a foreign-interest exemption; and certain original-issue-discount obligations whose interest would not be connected to a U.S. business. Works of art are excluded if they were imported only for exhibition, loaned to a public museum or gallery that does not benefit private owners, and were on display or being moved to or from display when the owner died. Stock in a regulated investment company is excluded only for the share that equals the fund’s qualifying assets at the end of the quarter before the decedent’s death (or another time the Treasury allows). Qualifying assets are the kinds of amounts, deposits, debt items, and other property described above or otherwise located outside the United States. That stock rule does not apply to people who died after December 31, 2011.
Full Legal Text
Title 26, §2105
Internal Revenue Code — Source: USLM XML via OLRC
(a)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)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.
(c)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)(1)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)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)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
Apr 5, 2026
Release point: 119-73not60