Public Law 119-73 (01/23/2026)

26 U.S.C. § 2105

Property without the United States

(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 .

Aug. 16, 1954, ch. 73668A Stat. 397Pub. L. 89–809, title I, § 108(d)80 Stat. 1572Pub. L. 98–369, div. A, title I, § 127(d)98 Stat. 651Pub. L. 100–647, title I, § 1012(g)(4)102 Stat. 3501Pub. L. 103–66, title XIII, § 13237(b)107 Stat. 508Pub. L. 105–34, title XIII, § 1304(a)111 Stat. 1040Pub. L. 108–357, title IV, § 411(b)118 Stat. 1504Pub. L. 110–343, div. C, title II, § 207(a)122 Stat. 3865Pub. L. 111–312, title VII, § 726(a)124 Stat. 3316(, ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , .)

Editorial Notes

Amendments

Pub. L. 111–3122010—Subsec. (d)(3). substituted “” for “”.

Pub. L. 110–3432008—Subsec. (d)(3). substituted “” for “”.

Pub. L. 108–3572004—Subsec. (d). added subsec. (d).

Pub. L. 105–341997—Subsec. (b)(4). added par. (4).

Pub. L. 103–661993—Subsec. (b). 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.”

Pub. L. 100–6471988—Subsec. (b)(1). 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”.

Pub. L. 98–3691984—Subsec. (b). , 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).

Pub. L. 89–8091966—Subsec. (b). 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)124 Stat. 3317

“The amendment made by this section [amending this section] shall apply to estates of decedents dying after .”
, , , provided that:

Effective Date of 2008 Amendment

Pub. L. 110–343, div. C, title II, § 207(b)122 Stat. 3865

“The amendment made by this section [amending this section] shall apply to decedents dying after .”
, , , provided that:

Effective Date of 2004 Amendment

Pub. L. 108–357section 411(d)(2) of Pub. L. 108–357section 871 of this titleAmendment by applicable to estates of decedents dying after , see , set out as a note under .

Effective Date of 1997 Amendment

Pub. L. 105–34, title XIII, § 1304(b)111 Stat. 1040

“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 [].”
, , , provided that:

Effective Date of 1993 Amendment

Pub. L. 103–66section 13237(d) of Pub. L. 103–66section 871 of this titleAmendment by applicable to the estates of decedents dying after , see , set out as a note under .

Effective Date of 1988 Amendment

Pub. L. 100–647Pub. L. 99–514section 1019(a) of Pub. L. 100–647section 1 of this titleAmendment by effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, , to which such amendment relates, see , set out as a note under .

Effective Date of 1984 Amendment

Pub. L. 98–369section 127(g)(2) of Pub. L. 98–369section 871 of this titleAmendment by applicable to obligations issued after , with respect to the estates of decedents dying after such date, see , set out as a note under .

Effective Date of 1966 Amendment

Pub. L. 89–809section 108(i) of Pub. L. 89–809section 2101 of this titleAmendment by applicable with respect to estates of decedents dying after , see , set out as a note under .