26 CFR § 20.2014-7 - Limitation on credit if a deduction for foreign death taxes is allowed under section 2053(d).

---
identifier: "/us/cfr/t26/s20.2014-7"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "26 CFR § 20.2014-7 - Limitation on credit if a deduction for foreign death taxes is allowed under section 2053(d)."
title_number: 26
title_name: "Internal Revenue"
section_number: "20.2014-7"
section_name: "Limitation on credit if a deduction for foreign death taxes is allowed under section 2053(d)."
chapter_name: "INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY"
subchapter_number: "B"
subchapter_name: "ESTATE AND GIFT TAXES"
part_number: "20"
part_name: "ESTATE TAX; ESTATES OF DECEDENTS DYING AFTER AUGUST 16, 1954"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "26 U.S.C. 7805."
regulatory_source: "T.D. 6296, 23 FR 4529, June 24, 1958; 25 FR 14021, Dec. 31, 1960, unless otherwise noted."
cfr_part: "20"
---


# 20.2014-7 Limitation on credit if a deduction for foreign death taxes is allowed under section 2053(d).

If a deduction is allowed under section 2053(d) for foreign death taxes paid with respect to a charitable gift, the credit for foreign death taxes is subject to special limitations. In such a case the property described in subparagraphs (A), (B), and (C) of paragraphs (1) and (2) of section 2014(b) shall not include any property with respect to which a deduction is allowed under section 2053(d). The application of this section may be illustrated by the following example:

|  |  |  |
| --- | --- | --- |
| Gross estate |  | $1,200,000.00 |
| Debts and charges | $40,000.00 |  |
| Bequest of U.S. corporation stock to niece | 400,000.00 |  |
| Bequest of country X corporation stock to nephew | 100,000.00 |  |
| Net Federal estate tax | 136,917.88 |  |
|  |  | 676,917.88 |
| Residue before country X tax | 523,082.12 |  |
| Country X succession tax on charity | 100,000.00 |  |
| Charitable deduction |  | 423,082.12 |
|  |  |  |
| Gross estate |  | 1,200,000.00 |
| Debts and charges | 40,000.00 |  |
| Deduction of foreign death tax under section 2053(d) | 100,000.00 |  |
| Charitable deduction | 423,082.12 |  |
| Exemption | 60,000.00 |  |
|  |  | 623,082.12 |
| Taxable estate | 576,917.88 |  |
| Gross estate tax | 172,621.26 |  |
| Credit for State death taxes | 15,476.72 |  |
| Gross estate tax less credit for State death taxes | 157,144.54 |  |
| Credit for foreign death taxes | 20,226.66 |  |
| Net Federal estate tax |  | 136,917.88 |
|  |  |  |
|  |  |  |
| Succession tax on nephew: |  |  |
| Value of stock of country X corporation |  | 100,000 |
| Tax (50% rate) |  | $50,000 |
| Succession tax on charity: |  |  |
| Value of stock of country X corporation |  | 200,000 |
| Tax (50% rate) |  | 100,000 |
|  |  |  |
| Value of situated in country X |  | 300,000 |
| Value of property in respect of which a deduction is allowed under section 2053(d) |  | 200,000 |
| Value of property situated within country X, subjected to tax, and included in gross estate as limited by section 2014(f) |  | 100,000 |

****a****First Limitation, § 28.2014-2()

$100,000 (factor C of the ratio stated at § 20.2014-2(a)) ÷ $100,000 + $200,000 (factor D of the ratio stated at § 20.2014 2(a) × $50,000 + $100,000) (factor B of the ratio stated at § 20.2014-2(a)) = $50,000.00

****a****Second Limitation, § 28.2014-3()

$100,000 (factor G of the ratio stated at § 20.2014-3(a)) (as limited by section 2014(f)) ÷ $1,200,000 − $423,082.12 (factor H of the ratio stated at § 20.2014 3(a) × $172,621.26 − $15,476.72) (factor F of the ratio stated at § 20.2014-3(a)) = $20,226.66Z

[T.D. 6600, 27 FR 4984, May 27, 1962]