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Discussion
I. General Rules
A. Estate Tax Principles
As a general rule, the Internal Revenue Code imposes a
Federal tax “on the transfer of the taxable estate (determined as
provided in section 2106) of every decedent nonresident not a
citizen of the United States.” Sec. 2101(a). Such taxable
estate, in turn, is defined in section 2106(a) as “the value of
that part of * * * [a decedent’s] gross estate which at the time
of his death is situated in the United States”, less applicable
deductions. Section 2103 then specifies that the gross estate of
a nonresident alien “shall be that part of his gross estate
(determined as provided in section 2031) which at the time of his
death is situated in the United States.” Hence, the gross estate
of a nonresident alien comprises “all property, real or personal,
tangible or intangible”, to the extent provided in sections 2033
through 2045, so long as that property is located in the United
States. Secs. 2031(a), 2103. Section 2033 broadly states that
“The value of the gross estate shall include the value of all
property to the extent of the interest therein of the decedent at
the time of his death.”
As regards the deductions permitted to nonresident aliens,
section 2106(a)(1) provides for allowance of that proportion of
the deductions specified in section 2053, relating to expenses,
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Last modified: May 25, 2011