Page:United States Statutes at Large Volume 68A.djvu/438

 398

INTERNAL REVENUE CODE OF 1954

engaged in business in the United States a t the time of his death shall not be deemed property within the United States. (c) WORKS OF A R T ON LOAN FOR E X H I B I T I O N. — For purposes of

this subchapter, works of a r t owned by a nonresident not a citizen of the United States shall not be deemed property within the United States if such works of a r t 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. SEC. 2106. TAXABLE ESTATE.

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(a) DEFINITION OF TAXABLE E S T A T E, — For purposes of the tax

imposed by section 2101, the value of the taxable estate of every decedent nonresident not a citizen of the United States shall be determined by deducting from the value of that part of his gross estate which at the time of his death is situated in the United States— (1) E X P E N S E S, LOSSES, INDEBTEDNESS, AND TAXES.—That proportion of the deductions specified in sections 2053 and 2054 (other than the deductions described in the following sentence) which the value of such part bears to the value of his entire gross estate, wherever situated. Any deduction allowable under section 2053 in the case of a claim against the estate which was founded on a promise or agreement b u t was not contracted for an adequate and full consideration in money or money's worth shall be allowable under this paragraph to the extent that it would be allowable as a deduction under paragraph (2) if such promise or agreement constituted a bequest. (2) TRANSFERS FOR PUBLIC, CHARITABLE, AND RELIGIOUS U S E S. —

(A) IN GENERAL.—The amount of all bequests, legacies, devises, or transfers (including the interest which falls into any such bequest, legacy, devise, or transfer as a result of an irrevocable disclaimer of a bequest, legacy, devise, transfer, or power, if the disclaimer is made before the date prescribed for the filing of the estate tax return)— (i) to or for the use of the United States, any State, Territory, any political subdivision thereof, or the District of Columbia, for exclusively public purposes; (ii) to or for the use of any domestic corporation organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes, including the encouragement of art and the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private stockholder or individual, and no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation; or (iii) to a trustee or trustees, or a fraternal society, order, or association operating under the lodge system, b u t only if such contributions or gifts are to be used within the United States by such trustee or trustees, or by such fraternal society, order, or association, exclusively for religious, charitable, scientific, literary, or educational purposes, or for the prevention § 2106(b)

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