Page:United States Statutes at Large Volume 68A.djvu/429

 CH. 11—ESTATE TAX SEC. 2052. EXEMPTION.

For purposes of the tax imposed by section 2001, the value of the taxable estate shall be determined by deducting from the value of the gross estate an exemption of $60,000. SEC. 2053. EXPENSES, INDEBTEDNESS, AND TAXES. (a) GENERAL RULE. — For purposes of the tax imposed by section

2001, the value of the taxable estate shall be determined by deducting from the value of the gross estate such amounts— (1) for funeral expenses, (2) for administration expenses, (3) for claims against the estate, and (4) for unpaid mortgages on, or any indebtedness in respect of, property where the value of the decedent's interest therein, undiminished by such mortgage or indebtedness, is included in the value of the gross estate, as are allowable by the laws of the jurisdiction, whether within or without the United States, under which the estate is being administered. (b) OTHER ADMINISTRATION EXPENSES.—Subject to the limitations in paragraph (1) of subsection (c), there shall be deducted in deter muling the taxable estate amounts representing expenses incurred in administering property not subject to claims which is included in the gross estate to the same extent such amounts would be allowable as a deduction under subsection (a) if such property were subject to claims, and such amounts are paid before the expiration of the period of limitation for assessment provided in section 6501. (c) LIMITATIONS.— (1) LIMITATIONS APPLICABLE TO SUBSECTIONS (a) AND (b).— (A) CONSIDERATION FOR CLAIMS.—The deduction allowed by

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this section in the case of claims against the estate, unpaid mortgages, or any indebtedness shall, when founded on a promise or agreement, be limited to the extent that they were contracted bona fide and for an adequate and full consideration in money or money's worth; except that in any case in which any such claim is founded on a promise or agreement of the decedent to make a contribution or gift to or for the use of any donee described in section 2055 for the purposes specified therein, the deduction for such claims shall not be so limited, b u t shall be limited to the extent that it would be allowable as a deduction under section 2055 if such promise or agreement constituted a bequest. (B) CERTAIN TAXES.—Any income taxes on income received after the death of the decedent, or property taxes not accrued before his death, or any estate, succession, legacy, or inheritance taxes, shall not be deductible under this section. (2) LIMITATIONS APPLICABLE ONLY TO SUBSECTION (a),—In the

case of the amounts described in subsection (a), there shall be disallowed the amount by which the deductions specified therein exceed the value, a t the time of the decedent's death, of property subject to claims, except to the extent that such deductions represent amounts paid before the date prescribed for the filing of the estate tax return. For purposes of this section, the term "property subject to claims" means property includible in the gross estate of the decedent which, or the avails of which, would under the applicable § 2053(c)(2)

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