20.2056A-7—Allowance of prior transfer credit under section 2013.
(a) Property subject to QDOT election.
Section 2056(d)(3) provides special rules for computing the section 2013 credit allowed with respect to property subject to a QDOT election. In computing the credit under section 2013, the amount of the credit is determined under section 2013 and the regulations thereunder, except that—
(1)
The first limitation as described in section 2013(b) and § 20.2013-2 is the amount of the estate tax imposed under section 2056A(b)(1)(A), with respect to distributions during the spouse's life, and under section 2056A(b)(1)(B), with respect to the value of the QDOT assets on the spouse's death;
(2)
In computing the second limitation as described in section 2013(c) and § 20.2013-3, the value of the property transferred to the decedent (as defined in section 2013(d) and § 20.2013-4) is deemed to be the value of the QDOT assets on the date of death of the surviving spouse. The value as so determined is not reduced by the section 2056A estate tax imposed at the time of the spouse's death; and
(3)
The amount of the credit is determined without regard to the percentage limitations contained in section 2013(a).
(b) Property not subject to QDOT election.
If property includible in a decedent's gross estate passes to a noncitizen surviving spouse (the transferee) and no deduction is allowed to the decedent's estate for that interest in property under section 2056(a) solely because the requirements of section 2056(d)(2) are not satisfied, and the transferee spouse dies with an estate that is subject to tax under section 2001 or 2101, as the case may be, any credit for tax on prior transfers allowable to the estate of the transferee spouse under section 2013 with respect to such interest in property is determined in accordance with the rules of section 2013 and the regulations thereunder, except that the amount of the credit is determined without regard to the percentage limitations contained in section 2013(a).
Code of Federal Regulations
Taxable estate | $1,500,000 | |
Gross estate tax | 555,800 | |
Less: Unified credit | $192,800 | |
Credit for state death taxes | 64,400 | 257,200 |
Pre-2013 net estate tax payable | $298,600 |
Taxable estate | $700,000 | |
Gross estate tax | 229,800 | |
Code of Federal Regulations
480
|
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Less: Unified credit | $192,800 | |
Credit for state death taxes | 18,000 | 210,800 |
Net tax payable | $19,000 | |
(C) Second Limitation: | ||
Paragraph (ii)(A) of this Example | $298,600 | |
Less: Paragraph (ii)(B) of this Example | 19,000 | |
$279,600 |