Title 26, Internal Revenue CodeRelease 119-102
§273 Holders of Life or Terminable Interest
Title 26 › Subtitle A — Income Taxes › CHAPTER 1 — NORMAL TAXES AND SURTAXES › Subchapter B — Computation of Taxable Income › PART IX — ITEMS NOT DEDUCTIBLE › § 273
Summary
Payments under state, DC, possession, or foreign law to holders of a life or terminable interest from gift, bequest, or inheritance may not be reduced over time.
Full Legal Text
Title 26, §273
Internal Revenue Code, Source: USLM XML via OLRC
Amounts paid under the laws of a State, the District of Columbia, a possession of the United States, or a foreign country as income to the holder of a life or terminable interest acquired by gift, bequest, or inheritance shall not be reduced or diminished by any deduction for shrinkage (by whatever name called) in the value of such interest due to the lapse of time.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
1976—Pub. L. 94–455 struck out reference to amounts paid under laws of a Territory.
Statutory Notes and Related Subsidiaries
Effective Date
of 1976 AmendmentAmendment by Pub. L. 94–455 effective for taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94–455, set out as a note under section 2 of this title.
Reference
Citations & Metadata
Citation
26 U.S.C. § 273
Title 26, Internal Revenue Code
Last Updated
Aug 21, 2026
Release point: 119-102