Section 11.27 Tax Computation

• Library: Estate Administration 2014 Supp

D. (§11.27) Tax Computation

Estates of nonresident aliens dying after November 10, 1988, are subject to the same rates of federal estate tax that apply to United States citizens and resident aliens. I.R.C. § 2101(b). A unified credit is available to the estates of nonresident aliens in the amount of $13,000. I.R.C. § 2102(b). Expatriates are entitled to the same credit. I.R.C. § 2107(c)(1). These provisions permit exemption of the first $60,000 of property subject to United States taxation from the estate tax. Michael A. Heimos, 837-2^nd T.M. at § VI.D.1. Decedents who are residents of United States possessions who are considered nonresident aliens by virtue of I.R.C. § 2209 are entitled to a potentially larger credit. I.R.C. § 2102(b)(2). The description of the credit as a unified credit is a misnomer; no credit is available for gifts made by nonresident aliens. I.R.C. § 2505(a).

If an expatriate is subject to a transfer type of tax in another country on property subjected to United States estate tax solely because of the expatriation provisions, i.e., the foreign...