Page:United States Statutes at Large Volume 68A.djvu/277

 CH. 1—NORMAL TAXES AND SURTAXES

237

or inheritance acquires, subject to such obligation, from the decedent an interest in property of the decedent. (2) DEPLETION.—In the case of the deduction specified in section 611, to the person described in subsection (a)(1)(A), (B), or (C) who, in the manner described therein, receives the income to which the deduction relates, in the taxable year when such income is received. (c)

DEDUCTION FOR ESTATE T A X. — (1) ALLOWANCE OF DEDUCTION.— (A) GENERAL RULE.—A person

who includes an amount in gross income under subsection (a) shall be allowed, for the same taxable year, as a deduction an amount which bears the same ratio to the estate tax attributable to the net value for estate tax purposes of all the items described in subsection (a)(1) as the value for estate tax purposes of the items of gross income or portions thereof in respect of which such person included the amount in gross income (or the amount included in gross income, whichever is lower) bears to the value for estate tax purposes of all the items described in subsection (a)(1). (B) ESTATES AND TRUSTS.—In the case of an estate or trust, the amount allowed as a deduction under subparagraph (A) shall be computed by excluding from the gross income of the estate or trust the portion (if any) of the items described in subsection (a) (1) which is properly paid, credited, or to be distributed to the beneficiaries during the taxable year. This subparagraph shall apply to the same taxable years, and to the same extent, as is provided in section 683. (2) M E T H O D OF COMPUTING DEDUCTION.—For purposes of para-. graph (1)— (A) The term "estate tax" means the tax imposed on the estate of the decedent or any prior decedent under section 2001 or 2101, reduced by the credits against such tax. (B) The net value for estate tax purposes of all the items described in subsection (a)(1) shall be the excess of the value for estate tax purposes of all the items described in subsection (a)(1) over the deductions from the gross estate in respect of claims which represent the deductions and credit described in subsection (b). Such net value shall be determined with regard to the provisions of section 421(d)(6)(B), relating to the deduction for estate tax with respect to restricted stock options. (C) The estate tax attributable to such net value shall be an amount equal to the excess of the estate tax over the estate tax computed without including in the gross estate such net value. (d) AMOUNTS RECEIVED BY SURVIVING ANNUITANT U N D E R JOINT AND SURVIVOR ANNUITY CONTRACT.^— (1) DEDUCTION FOR ESTATE TAX.-—For purposes of computing

the deduction under subsection (c)(1)(A), amounts received by a surviving annuitant-— (A) as an annuity under a joint and survivor annuity contract where the decedent annuitant died after December 31, 1953, and after the annuity starting date (as defined in section 72(c)(4)), and § 691(d)(1)(A)

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