[Code of Federal Regulations]
[Title 26, Volume 14]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR20.2013-3]

[Page 246-247]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 20_ESTATE TAX; ESTATES OF DECEDENTS DYING AFTER AUGUST 16, 
1954--Table of Contents
 
Sec.  20.2013-3  ``Second limitation''.

    (a) The amount of the Federal estate tax attributable to the 
transferred property in the present decedent's estate is the ``second 
limitation''. Thus, the credit is limited to the difference between--
    (1) The net estate tax payable (see paragraph (b)(5) or (c), as the 
case may be, of Sec.  20.0-2) with respect to the present decedent's 
estate, determined without regard to any credit for tax on prior 
transfers under section 2013 or any credit for foreign death taxes 
claimed under the provisions of a death tax convention, and

[[Page 247]]

    (2) The net estate tax determined as provided in subparagraph (1) of 
this paragraph but computed by subtracting from the present decedent's 
gross estate the value of the property transferred (see Sec.  20.2013-
4), and by making only the adjustment indicated in paragraph (b) of this 
section if a charitable deduction is allowable to the estate of the 
present decedent.
    (b) If a charitable deduction is allowable to the estate of the 
present decedent under the provisions of section 2055 or section 2106 
(a)(2) (for estates of nonresidents not citizens), for purposes of 
determining the tax described in paragraph (a)(2) of this section, the 
charitable deduction otherwise allowable is reduced by an amount, E, 
which bears the same ratio to F (the charitable deduction otherwise 
allowable) as G (the value of the transferred property (see Sec.  
20.2013-4)) bears to H (the value of the present decedent's gross estate 
reduced by the amount of the deductions for expenses, indebtedness, 
taxes, losses, etc., allowed under the provisions of sections 2053 and 
2054 or section 2106(a)(1) (for estates of nonresidents not citizens)). 
See paragraph (c)(2) of example (1) and paragraph (c)(2) of example (2) 
in Sec.  20.2013-6.
    (c) If the credit for tax on prior transfers relates to property 
received from two or more transferors, the property received from all 
transferors is aggregated in determining the limitation on credit under 
this section (the ``second limitation''). However, the limitation so 
determined is apportioned to the property received from each transferor 
in the ratio that the property received from each transferor bears to 
the total property received from all transferors. See paragraph (c) of 
example (2) in Sec.  20.2013-6.
    (d) For illustrations of the application of this section, see 
examples (1) and (2) set forth in Sec.  20.2013-6.

[T.D. 6296, 23 FR 4529, June 24, 1958; 25 FR 14021, Dec. 31, 1960, as 
amended by T.D. 7296, 38 FR 34191, Dec. 12, 1973]