Reg. § 20.2106-1 Estates of nonresidents not citizens; taxable estate; deductions in general.
(a) The taxable estate of a nonresident who was not a citizen of the United States at the time of his death is determined by adding the value of that part of his gross estate which, at the time of his death, is situated in the United States and, in the case of an estate to which section (relating to expatriation to avoid tax) applies, any amounts includible in his gross estate under section , and then subtracting from the sum thereof the total amount of the following deductions:
(1) The deductions allowed in the case of estates of decedents who were citizens or residents of the United States under sections and (see through and ) for expenses, indebtedness and taxes, and for losses, to the extent provided in .
(2) A deduction computed in the same manner as the one allowed under section (see through ) for charitable, etc., transfers, except—
(i) That the deduction is allowed only for transfers to corporations and associations created or organized in the United States, and to trustees for use within the United States, and
(ii) That the provisions contained in relating to termination of a power to consume are not applicable.
(3) Subject to the special rules set forth at , the amount which would be deductible with respect to property situated in the United States at the time of the decedent's death under the principles of section . Thus, if the surviving spouse of the decedent is a citizen of the United States at the time of the decedent's death, a marital deduction is allowed with respect to the estate of the decedent if all other applicable requirements of section are satisfied. If the surviving spouse of the decedent is not a citizen of the United States at the time of the decedent's death, the provisions of section , including specifically the provisions of section and (unless section applies) the provisions of section (QDOTs) must be satisfied.
(b) Section provides that no deduction is allowed under or of this section unless the executor discloses in the estate tax return the value of that part of the gross estate not situated in the United States. See . Such part must be valued as of the date of the decedent's death, or if the alternate valuation method under section is elected, as of the applicable valuation date.
[T.D. 6296, 23 FR 5429, June 24, 1958, as amended by T.D. 6526, 26 FR 417, Jan. 19, 1961; T.D. 7296, 38 FR 34197, Dec. 12, 1973; T.D. 7318, 39 FR 25457, July 11, 1974; T.D. 8612, 60 FR 43552, Aug. 22, 1995]