EFFECTIVE DATE of 1981 Amendment

Section 401(c)(1) of Pub. L. 97-34 provided that: "The amendments made by subsection (a) [amending sections 2010 and 6018 of this title] shall apply to the estates of decedents dying after December 31, 1981".

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 2011, 2012, 2013, 2014, 2102, 2107, 2602, 6601 of this title.

§ 2011. Credit for State death taxes

(a) In general

The tax imposed by section 2001 shall be credited with the amount of any estate, inheritance, legacy, or succession taxes actually paid to any State or the District of Columbia, in respect of any property included in the gross estate (not including any such taxes paid with respect to the estate of a person other than the decedent).

(b) Amount of credit

The credit allowed by this section shall not exceed the appropriate amount stated in the following table:

If the adjusted taxable estate is:

Not over $90,000......

The maximum tax credit

shall be:

hoths of 1% of the amount by which the taxable estate exceeds $40,000.

Over $90,000 but not $400 plus 1.6% of the excess over $140,000. over $90,000. Over $140,000 but not $1,200 plus 2.4% of the over $240,000. excess over $140,000. Over $240,000 but not $3,600 plus 3.2% of the over $440,000. excess over $240,000. Over $440,000 but not $10,000 plus 4% of the over $640,000. excess over $440,000. Over $640,000 but not $18,000 plus 4.8% of the over $840,000. excess over $640,000. Over $840,000 but not $27,600 plus 5.6% of the over $1,040,000. excess over $840,000. Over $1,040,000 but not $38,800 plus 6.4% of the over $1,540,000. excess over $1,040,000. Over $1,540,000 but not $70,800 plus 7.2% of the over $2,040,000. excess over $1,540,000. Over $2,040,000 but not $106,800 plus 8% of the over $2,540,000.

excess over $2,040,000.

Over $2,540,000 but not $146,800 plus 8.8% of the over $3,040,000. Over $3,040,000 but not over $3,540,000. Over $3,540,000 but not $238,800 plus 10.4% of the over $4,040,000. excess over $3,540,000. Over $4,040,000 but not $290,800 plus 11.2% of the over $5,040,000. Over $5,040,000 but not over $6,040,000. Over $6,040,000 but not $522,800 plus 12.8% of the over $7,040,000.

excess over $2,540,000 $190,800 plus 9.6% of the excess over $3,040,000.

excess over $4,040,000. $402,800 plus 12% of the excess over $5,040,000.

excess over $6,040,000.

Over $7,040,000 but not $650,800 plus 13.6% of the over $8,040,000. Over $8,040,000 but not over $9,040,000. Over $9,040,000 but not over $10,040,000. Over $10,040,000.....

excess over $7,040,000. $786,800 plus 14.4% of the excess over $8,040,000. $930,800 plus 15.2% of the excess over $9,040,000. $1,082,800 plus 16% of the excess over $10,040,000.

For purposes of this section, the term "adjusted taxable estate" means the taxable estate reduced by $60,000.

(c) Period of limitations on credit

The credit allowed by this section shall include only such taxes as were actually paid and credit therefor claimed within 4 years after the filing of the return required by section 6018, except that

(1) If a petition for redetermination of a deficiency has been filed with the Tax Court within the time prescribed in section 6213(a), then within such 4-year period or before the expiration of 60 days after the decision of the Tax Court becomes final.

(2) If, under section 6161 or 6166, an extension of time has been granted for payment of the tax shown on the return, or of a deficiency, then within such 4-year period or before the date of the expiration of the period of the extension.

(3) If a claim for refund or credit of an overpayment of tax imposed by this chapter has been filed within the time prescribed in section 6511, then within such 4-year period or before the expiration of 60 days from the date of mailing by certified mail or registered mail by the Secretary to the taxpayer of a notice of the disallowance of any part of such claim, or before the expiration of 60 days after a decision by any court of competent jurisdiction becomes final with respect to a timely suit instituted upon such claim, whichever is later.

Refund based on the credit may (despite the provisions of sections 6511 and 6512) be made if claim therefor is filed within the period above provided. Any such refund shall be made without interest.

(d) Basic estate tax

The basic estate tax and the estate tax imposed by the Revenue Act of 1926 shall be 125 percent of the amount determined to be the maximum credit provided by subsection (b). The additional estate tax shall be the difference between the tax imposed by section 2001 or 2101 and the basic estate tax.

(e) Limitation in cases involving deduction under section 2053(d)

In any case where a deduction is allowed under section 2053(d) for an estate, succession, legacy, or inheritance tax imposed by a State or the District of Columbia upon a transfer for public, charitable, or religious uses described in section 2055 or 2106(a)(2), the allowance of the credit under this section shall be subject to the following conditions and limitations:

(1) The taxes described in subsection (a) shall not include any estate, succession, legacy, or inheritance tax for which such deduction is allowed under section 2053(d). (2) The credit shall not exceed the lesser of

(A) the amount stated in subsection (b) on an adjusted taxable estate determined by allowing such deduction authorized by section 2053(d), or

(B) that proportion of the amount stated in subsection (b) on an adjusted taxable estate determined without regard to such

deduction authorized by section 2053(d) as (i) the amount of the taxes described in subsection (a), as limited by the provisions of paragraph (1) of this subsection, bears to (ii) the amount of the taxes described in subsection (a) before applying the limitation contained in paragraph (1) of this subsection.

(3) If the amount determined under subparagraph (B) of paragraph (2) is less than the amount determined under subparagraph (A) of that paragraph, then for purposes of subsection (d) such lesser amount shall be the maximum credit provided by subsection (b).

(f) Limitation based on amount of tax

The credit provided by this section shall not exceed the amount of the tax imposed by section 2001, reduced by the amount of the unified credit provided by section 2010.

(Aug. 16, 1954, ch. 736, 68A Stat. 374; Feb. 20, 1956, ch. 63, § 3, 70 Stat. 24; Sept. 2, 1958, Pub. L. 85-866, title I, §§ 65(a), 120(c)(1), 72 Stat. 1657, 1674; Aug. 21, 1959, Pub. L. 86–175, § 3, 73 Stat. 397; Oct. 4, 1976, Pub. L. 94-455, title XIX, §§ 1902(a)(12)(B), 1906(b)(13)(A), title XX, §§ 2001(c)(1)(A), 2004(f)(3), 90 Stat. 1806, 1834, 1849, 1872; Aug. 13, 1981, Pub. L. 97-34, title IV, § 422(e)(2), 95 Stat. 316.)

REFERENCES IN TEXT

The Revenue Act of 1926, referred to in subsec. (d), is act Feb. 26, 1926, ch. 27, 44 Stat. 9. For complete classification of this Act to the Code, see Tables.

AMENDMENTS

1981-Subsec. (c)(2). Pub. L. 97-34 struck out reference to section 6166A.

1976-Subsec. (a). Pub. L. 94-455, § 1902(a)(12)(B), struck out "or Territory" following "State".

Subsec. (b). Pub. L. 94-455, § 2001(c)(1)(A)(i), (ii), substituted "adjusted taxable estate" for "taxable estate" and added provision that, for purposes of this section the term "adjusted taxable estate" means the taxable estate reduced by $60,000.

Subsec. (c)(2). Pub. L. 94-455, § 2004(f)(3), substituted "section 6161, 6166, or 6166A" for "section 6161". Subsec. (c)(3). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary".

Subsec. (e). Pub. L. 94-455, §§ 1902(a)(12)(B), 2001(c)(1)(A)(iii), substituted "adjusted taxable estate" for "taxable estate" in par. (2) and struck out "or Territory" following "imposed by a State" in the provisions preceding par. (1).

Subsec. (f). Pub. L. 94-455, § 2001(c)(1)(A)(iv), added subsec. (f).

1959-Subsec. (e). Pub. L. 86-175 substituted "imposed by a State or Territory or the District of Columbia upon a transfer" for "imposed upon a transfer" in the introduction, "such deduction" for "a deduction" in par. (1) and "such deduction" for "the deduction" in two instances in par. (2).

1958-Subsec. (a). Pub. L. 85-866, § 102(c)(1), eliminated "or any possession of the United States," following "District of Columbia,".

Subsec. (c)(3). Pub. L. 85-866, § 65(a), added par. (3). 1956 Subsec. (e). Act Feb. 20, 1956, added subsec. (e).

EFFECTIVE DATE OF 1981 Amendment

Amendment by Pub. L. 97-34 applicable to estates of decedents dying after Dec. 31, 1981, see section 422(f)(1) of Pub. L. 97-34, set out as Effective Date of 1981 Amendment note under section 6166 of this title.

EFFECTIVE DATE OF 1976 Amendment

section

Amendment of subsecs. (a), (e) by 1902(a)(12)(B) of Pub. L. 94-455 applicable with respect to gifts made after Dec. 31, 1976, see section 1902(c)(2) of Pub. L. 94-455, set out as a note under section 2501 of this title.

Section 1902(c)(1) of Pub. L. 94-455 as amended by Pub. L. 95-600, title VII, § 703(j)(12), Nov. 6, 1978, 92 Stat. 2942, provided that: "The amendments made by paragraphs (1) through (8), and paragraphs (12)(A), (B), and (C), of subsection (a) and by subsection (b) [amending sections 2011, 2012, 2013, 2016, 2038, 2053, 2055, 2056, 2106, 2107, 2108, 2201, 6167, and 6503 of this title, repealing section 2202 of this title, and enacting provisions set out as a note under section 2201 of this title] shall apply in the case of estates of decedents dying after the date of the enactment of this Act [Oct. 4, 1976], and the amendment made by paragraph (9) of subsection (a) [amending section 2204 of this title] shall apply in the case of estates of decedents dying after December 31, 1970."

Amendment of subsecs. (b), (e), (f) by section 2001(c)(1)(A)(i) to (iv) of Pub. L. 94-455 applicable to estates of decedents dying after Dec. 31, 1976, see section 2001(d)(1) of Pub. L. 94-455, set out as a note under section 2001 of this title.

Amendment of subsec. (c)(2) by section 2004(f)(3) of Pub. L. 94-455 applicable to estates of decedents dying after Dec. 31, 1976, see section 2004(g) of Pub. L. 94-455, set out as an Effective Date note under section 6166 of this title.

EFFECTIVE DATE OF 1959 AMENDMENT Amendment by Pub. L. 86-175 applicable with respect to estates of decedents dying on or after July 1, 1955, see section 4 of Pub. L. 86-175, set out as a note under section 2053 of this title.

EFFECTIVE DATE OF 1958 AMENDMENT

Section 102(d) of Pub. L. 85-866 provided that: "The amendments made by this section (other than by subsection (b)) [enacting section 2208 of this title and amending sections 2011(a), 2104(f), and 2053(d)(1) of this title] shall apply to the estates of decedents dying after the date of the enactment of this Act [Sept. 2, 1958]. The amendment made by subsection (b) [amending section 2501(b), (c) of this title] shall apply to gifts made after the date of the enactment of this Act [Sept. 2, 1958]."

Section 65(c) of Pub. L. 85-866 provided that: “The amendment made by subsection (a) [adding subsec. (c)(3) of this section] shall apply with respect to estates of decedents dying after August 16, 1954. The amendment made by subsection (b) [adding subsec. (c)(3) of this section] shall apply with respect to estates of decedents dying after February 10, 1939, and on or before August 16, 1954."

EFFECTIVE DATE OF 1956 Amendment

Amendment by act Feb. 20, 1956, applicable to the estates of all decedents dying after Dec. 31, 1953, see section 4 of act Feb. 20, 1956, set out as a note under section 2053 of this title.

CROSS REFERENCES

Estates of nonresidents not citizens, see section 2102 of this title.

Limitations, see section 6511 of this title. Members of Armed Forces dying during induction period, see section 2201 of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2012, 2013, 2014, 2015, 2016, 2053, 2102, 2107, 2201, 2602, 6511, 6612 of this title.

§ 2012. Credit for gift tax (a) In general

If a tax on a gift has been paid under chapter 12 (sec. 2501 and following), or under corresponding provisions of prior laws, and thereafter on the death of the donor any amount in respect of such gift is required to be included in the value of the gross estate of the decedent for purposes of this chapter, then there shall be credited against the tax imposed by section 2001 the amount of the tax paid on a gift under chapter 12, or under corresponding provisions of prior laws, with respect to so much of the property which constituted the gift as is included in the gross estate, except that the amount of such credit shall not exceed an amount which bears the same ratio to the tax imposed by section 2001 (after deducting from such tax the credit for State death taxes provided by section 2011 and the unified credit provided by section 2010) as the value (at the time of the gift or at the time of the death, whichever is lower) of so much of the property which constituted the gift as is included in the gross estate bears to the value of the entire gross estate reduced by the aggregate amount of the charitable and marital deductions allowed under sections 2055, 2056, and 2106(a)(2).

(b) Valuation reductions

In applying, with respect to any gift, the ratio stated in subsection (a), the value at the time of the gift or at the time of the death, referred to in such ratio, shall be reduced

(1) by such amount as will properly reflect the amount of such gift which was excluded in determining (for purposes of section 2503(a)), or of corresponding provisions of prior laws, the total amount of gifts made during the calendar quarter (or calendar year if the gift was made before January 1, 1971) in which the gift was made;

(2) if a deduction with respect to such gift is allowed under section 2056(a) (relating to marital deduction), then by the amount of such value, reduced as provided in paragraph (1); and

(3) if a deduction with respect to such gift is allowed under sections 2055 or 2106(a)(2) (relating to charitable deduction), then by the amount of such value, reduced as provided in paragraph (1) of this subsection.

(c) Where gift considered made one-half by spouse

Where the decedent was the donor of the gift but, under the provisions of section 2513, or corresponding provisions of prior laws, the gift was considered as made one-half by his

spouse

(1) the term "the amount of the tax paid on a gift under chapter 12", as used in subsection (a), includes the amounts paid with respect to each half of such gift, the amount paid with respect to each being computed in the manner provided in subsection (d); and

(2) in applying, with respect to such gift, the ratio stated in subsection (a), the value at the time of the gift or at the time of the death, referred to in such ratio, includes such value with respect to each half of such gift, each such value being reduced as provided in paragraph (1) of subsection (b).

(d) Computation of amount of gift tax paid (1) Amount of tax

For purposes of subsection (a), the amount of tax paid on a gift under chapter 12, or under corresponding provisions of prior laws, with respect to any gift shall be an amount which bears the same ratio to the total tax paid for the calendar quarter (or calendar year if the gift was made before January 1, 1971) in which the gift was made as the amount of such gift bears to the total amount of taxable gifts (computed without deduction of the specific exemption) for such quarter or year.

(2) Amount of gift

For purposes of paragraph (1), the "amount of such gift" shall be the amount included with respect to such gift in determining (for the purposes of section 2503(a), or of corresponding provisions of prior laws) the total amount of gifts made during such quarter or year, reduced by the amount of any deduction allowed with respect to such gift under section 2522, or under corresponding provisions of prior laws (relating to charitable deduction), or under section 2523 (relating to marital deduction).

(e) Section inapplicable to gifts made after December 31, 1976

No credit shall be allowed under this section with respect to the amount of any tax paid under chapter 12 on any gift made after December 31, 1976.

(Aug. 16, 1954, ch. 736, 68A Stat. 375; Dec. 31, 1970, Pub. L. 91-614, title I, § 102(d)(2), 84 Stat. 1841; Oct. 4, 1976, Pub. L. 94-455, title XIX, § 1902(a)(1), title XX, § 2001(a)(3), (c)(1)(B), 90 Stat. 1804, 1848, 1850; Aug. 13, 1981, Pub. L. 97-34, title IV, § 403(a)(2)(A), 95 Stat. 301.)

AMENDMENTS

1981-Subsec. (b)(2). Pub. L. 97-34 substituted "the amount of such value, reduced as provided in paragraph (1)" for "an amount which bears the same ratio to such value (reduced as provided in paragraph (1) of this subsection) as the aggregate amount of the marital deductions allowed under section 2056(a) bears to the aggregate amount of such marital deductions computed without regard to subsection (c) thereof".

1976-Subsec. (a). Pub. L. 94-455, § 2001(c)(1)(B), substituted "provided by section 2011 and the unified credit provided by section 2010" for "provided by section 2011".

Subsec. (b). Pub. L. 94-455, § 1902(a)(1)(A), added subsection heading and substituted a comma for a dash following "deduction)" in pars. (2) and (3).

Subsec. (c). Pub. L. 94-455, § 1902(a)(1)(B), added subsection heading.

Subsec. (d). Pub. L. 94-455, § 1902(a)(1)(C), (D), added headings for subsec. (d) and for pars. (1) and (2).

Subsec. (e). Pub. L. 94-455, § 2001(a)(3), added subsec. (e).

1970-Subsec. (b)(1). Pub. L. 91-614, § 102(d)(2)(A), substituted "the calendar quarter (or calendar year if the gift was made before January 1, 1971)" for "the year".

Subsec. (d). Pub. L. 91-614, § 102(d)(2)(B), substituted "such quarter or year" for "such year" in two places.

Subsec. (d)(1). Pub. L. 91-614, § 102(d)(2)(A), substituted "the calendar quarter (or calendar year if the gift was made before January 1, 1971)" for "the year".

EFFECTIVE DATE OF 1981 Amendment

Amendment by Pub. L. 97-34 applicable to estates of decedents dying after Dec. 31, 1981, but inapplicable under certain conditions under will executed before date which is 30 days after Aug. 13, 1981, or under trust created by such date, see section 403(e) of Pub. L. 97-34, set out as a note under section 2056 of this title.

EFFECTIVE Date of 1976 Amendment Amendment of subsecs. (b), (c), (d) by section 1902(a)(1)(A) to (D) of Pub. L. 94-455 applicable to estates of decedents dying after Oct. 4, 1976, see section 1902(c)(1) of Pub. L. 94-455, set out as a note under section 2011 of this title.

Amendment of subsecs. (a), (e) by section 2001(a)(3), (c)(1)(B) of Pub. L. 94-455 applicable to the estates of decedents dying after Dec. 31, 1976, see section 2001(d)(1) of Pub. L. 94-455, set out as a note under section 2001 of this title.

EFFECTIVE Date of 1970 AMENDMENT Amendment by Pub. L. 91-614 applicable with respect to gifts made after Dec. 31, 1970, see section 102(e) of Pub. L. 91-614, set out as a note under section 2501 of this title.

CROSS REFERENCES

Estates of nonresidents not citizens, see section 2102 of this title.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 2001, 2013, 2014, 2102, 2107 of this title.

§ 2013. Credit for tax on prior transfers

(a) General rule

The tax imposed by section 2001 shall be credited with all or a part of the amount of the Federal estate tax paid with respect to the transfer of property (including property passing as a result of the exercise or non-exercise of a power of appointment) to the decedent by or from a person (herein designated as a "transferor") who died within 10 years before, or within 2 years after, the decedent's death. If the transferor died within 2 years of the death of the decedent, the credit shall be the amount determined under subsections (b) and (c). If the transferor predeceased the decedent by more than 2 years, the credit shall be the following percentage of the amount so determined

(1) 80 percent, if within the third or fourth years preceding the decedent's death;

(2) 60 percent, if within the fifth or sixth years preceding the decedent's death;

(3) 40 percent, if within the seventh or eighth years preceding the decedent's death; and

(4) 20 percent, if within the ninth or tenth years preceding the decedent's death. (b) Computation of credit

Subject to the limitation prescribed in subsection (c), the credit provided by this section shall be an amount which bears the same ratio to the estate tax paid (adjusted as indicated hereinafter) with respect to the estate of the transferor as the value of the property transferred bears to the taxable estate of the trans

feror (determined for purposes of the estate tax) decreased by any death taxes paid with respect to such estate. For purposes of the preceding sentence, the estate tax paid shall be the Federal estate tax paid increased by any credits allowed against such estate tax under section 2012, or corresponding provisions of prior laws, on account of gift tax, and for any credits allowed against such estate tax under this section on account of prior transfers where the transferor acquired property from a person who died within 10 years before the death of the decedent.

(c) Limitation on credit

(1) In general

The credit provided in this section shall not exceed the amount by which

(A) the estate tax imposed by section 2001 or section 2101 (after deducting the credits provided for in sections 2010, 2011, 2012, and 2014) computed without regard to this section, exceeds

(B) such tax computed by excluding from the decedent's gross estate the value of such property transferred and, if applicable, by making the adjustment hereinafter indicated.

If any deduction is otherwise allowable under section 2055 or section 2106(a)(2) (relating to charitable deduction) then, for the purpose of the computation indicated in subparagraph (B), the amount of such deduction shall be reduced by that part of such deduction which the value of such property transferred bears to the decedent's entire gross estate reduced by the deductions allowed under sections 2053 and 2054, or section 2106(a)(1) (relating to deduction for expenses, losses, etc.). For purposes of this section, the value of such property transferred shall be the value as provided for in subsection (d) of this section.

(2) Two or more transferors

If the credit provided in this section relates to property received from 2 or more transferors, the limitation provided in paragraph (1) of this subsection shall be computed by aggregating the value of the property so transferred to the decedent. The aggregate limitation so determined shall be apportioned in accordance with the value of the property transferred to the decedent by each transfer

or.

(d) Valuation of property transferred

The value of property transferred to the decedent shall be the value used for the purpose of determining the Federal estate tax liability of the estate of the transferor but

(1) there shall be taken into account the effect of the tax imposed by section 2001 or 2101, or any estate, succession, legacy, or inheritance tax, on the net value to the decedent of such property;

(2) where such property is encumbered in any manner, or where the decedent incurs any obligation imposed by the transferor with respect to such property, such encumbrance or obligation shall be taken into account in

the same manner as if the amount of a gift to the decedent of such property was being determined; and

(3) if the decedent was the spouse of the transferor at the time of the transferor's death, the net value of the property transferred to the decedent shall be reduced by the amount allowed under section 2056 (relating to marital deductions), as a deduction from the gross estate of the transferor.

(e) Property defined

For purposes of this section, the term "property" includes any beneficial interest in property, including a general power of appointment (as defined in section 2041).

(f) Treatment of additional tax imposed under section 2032A

If section 2032A applies to any property included in the gross estate of the transferor and an additional tax is imposed with respect to such property under section 2032A(c) before the date which is 2 years after the date of the decedent's death, for purposes of this section

(1) the additional tax imposed by section 2032A(c) shall be treated as a Federal estate tax payable with respect to the estate of the transferor; and

(2) the value of such property and the amount of the taxable estate of the transferor shall be determined as if section 2032A did not apply with respect to such property. (g) Treatment of tax imposed on certain generationskipping transfers

If any property was transferred to the decedent in a transfer which is taxable under section 2601 (relating to tax imposed on generation-skipping transfers) and if the deemed transferor (as defined in section 2612) is not alive at the time of such transfer, for purposes of this section

(1) such property shall be deemed to have passed to the decedent from the deemed transferor;

(2) the tax payable under section 2601 on such transfer shall be treated as a Federal estate tax payable with respect to the estate of the deemed transferor; and

(3) the amount of the taxable estate of the deemed transferor shall be increased by the value of such property as determined for purposes of the tax imposed by section 2601 on the transfer.

(Aug. 16, 1954, ch. 736, 68A Stat. 377; Oct. 4, 1976, Pub. L. 94-455, title XIX, § 1902(a)(2), title XX, §§ 2001(c)(1)(C), 2003(c), 2006(b)(2), 90 Stat. 1804, 1850, 1862, 1888.)

AMENDMENTS

1976-Subsec. (b). Pub. L. 94-455, § 2001(c)(1)(C)(i), struck out "and increased by the exemption provided for by section 2052 or section 2106(a)(3), or the corresponding provisions of prior laws, in determining the taxable estate of the transferor for purposes of the estate tax" following "death taxes paid with respect to such estate".

Subsec. (c)(1)(A). Pub. L. 94-455, § 2001(c)(1)(C)(ii), substituted "credits provided for in sections 2010, 2011, 2012, and 2014) computed" for "credits for State death taxes, gift tax, and foreign death taxes provided for in sections 2011, 2012, and 2014) computed".

Subsec. (d)(3). Pub. L. 94-455, § 1902(a)(2), struck out", or the corresponding provision of prior law," following "marital deductions)".

Subsec. (f). Pub. L. 94-455, § 2003(c), added subsec.

(f).

Subsec. (g). Pub. L. 94-455, § 2006(b)(2), added subsec. (g).

CROSS REFERENCES

Estates of nonresidents not citizens, see section 2102 of this title.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 2102, 2107, 2602 of this title.

§ 2014. Credit for foreign death taxes (a) In general

The tax imposed by section 2001 shall be credited with the amount of any estate, inheritance, legacy, or succession taxes actually paid to any foreign country in respect of any property situated within such foreign country and inIcluded in the gross estate (not including any such taxes paid with respect to the estate of a person other than the decedent). The determination of the country within which property is situated shall be made in accordance with the rules applicable under subchapter B (sec. 2101 and following) in determining whether property is situated within or without the United States.

(b) Limitations on credit

The credit provided in this section with respect to such taxes paid to any foreign country

(1) shall not, with respect to any such tax, exceed an amount which bears the same ratio to the amount of such tax actually paid to such foreign country as the value of property which is

(A) situated within such foreign country, (B) subjected to such tax, and

(C) included in the gross estate bears to the value of all property subjected to such tax; and

(2) shall not, with respect to all such taxes, exceed an amount which bears the same ratio to the tax imposed by section 2001 (after deducting from such tax the credits provided by sections 2010, 2011, and 2012) as the value of property which is

(A) situated within such foreign country, (B) subjected to the taxes of such foreign country, and

(C) included in the gross estate bears to the value of the entire gross estate reduced by the aggregate amount of the deductions allowed under sections 2055 and 2056.

(c) Valuation of property

(1) The values referred to in the ratio stated in subsection (b)(1) are the values determined for purposes of the tax imposed by such foreign country.

(2) The values referred to in the ratio stated in subsection (b)(2) are the values determined under this chapter; but, in applying