26 USC § 273 - Holders of life or terminable interest

---
identifier: "/us/usc/t26/s273"
source: "usc"
legal_status: "official_prima_facie"
title: "26 USC § 273 - Holders of life or terminable interest"
title_number: 26
title_name: "INTERNAL REVENUE CODE"
section_number: "273"
section_name: "Holders of life or terminable interest"
chapter_number: 1
chapter_name: "NORMAL TAXES AND SURTAXES"
subchapter_number: "B"
subchapter_name: "Computation of Taxable Income"
part_number: "IX"
part_name: "ITEMS NOT DEDUCTIBLE"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Aug. 16, 1954, ch. 736, 68A Stat. 83; Pub. L. 94–455, title XIX, § 1901(c)(2), Oct. 4, 1976, 90 Stat. 1803.)"
---


# § 273. Holders of life or terminable interest

Amounts paid under the laws of a State, the District of Columbia, a possession of the United States, or a foreign country as income to the holder of a life or terminable interest acquired by gift, bequest, or inheritance shall not be reduced or diminished by any deduction for shrinkage (by whatever name called) in the value of such interest due to the lapse of time.

---

**Source Credit**: (Aug. 16, 1954, ch. 736, 68A Stat. 83; Pub. L. 94–455, title XIX, § 1901(c)(2), Oct. 4, 1976, 90 Stat. 1803.)

## Editorial Notes

### Amendments

1976— struck out reference to amounts paid under laws of a Territory.

## Statutory Notes and Related Subsidiaries

### Effective Date of 1976 Amendment

Amendment by  effective for taxable years beginning after , see , set out as a note under .