Treasury Regulations (26 C.F.R.)
26 CFR § 20.2053-7
Deduction for unpaid mortgages.
A deduction is allowed from a decedent's gross estate of the full unpaid amount of a mortgage upon, or of any other indebtedness in respect of, any property of the gross estate, including interest which had accrued thereon to the date of death, provided the value of the property, undiminished by the amount of the mortgage or indebtedness, is included in the value of the gross estate. If the decedent's estate is liable for the amount of the mortgage or indebtedness, the full value of the property subject to the mortgage or indebtedness must be included as part of the value of the gross estate; the amount of the mortgage or indebtedness being in such case allowed as a deduction. But if the decedent's estate is not so liable, only the value of the equity of redemption (or the value of the property, less the mortgage or indebtedness) need be returned as part of the value of the gross estate. In no case may the deduction on account of the mortgage or indebtedness exceed the liability therefor contracted bona fide and for an adequate and full consideration in money or money's worth. See § 20.2043-1. Only interest accrued to the date of the decedent's death is allowable even though the alternate valuation method under section 2032 is selected. In any case where real property situated outside the United States no deduction may be taken of any mortgage thereon or any other indebtedness does not form a part of the gross estate, in respect thereof.
[T.D. 6684, 28 FR 11409, Oct. 24, 1963]
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In this part (40 sections)
- 20.2039-5 · Annuities under individual retirement plans.
- 20.2040-1 · Joint interests.
- 20.2041-1 · Powers of appointment; in general.
- 20.2041-2 · Powers of appointment created on or before October 21, 1942.
- 20.2041-3 · Powers of appointment created after October 21, 1942.
- 20.2042-1 · Proceeds of life insurance.
- 20.2043-1 · Transfers for insufficient consideration.
- 20.2044-1 · Certain property for which marital deduction was previously…
- 20.2044-2 · Effective dates.
- 20.2045-1 · Applicability to pre-existing transfers or interests.
- 20.2046-1 · Disclaimed property.
- 20.2031-7A · Valuation of annuities, interests for life or a term of…
- 20.2051-1 · Definition of taxable estate.
- 20.2052-1 · Exemption.
- 20.2053-1 · Deductions for expenses, indebtedness, and taxes; in…
- 20.2053-2 · Deduction for funeral expenses.
- 20.2053-3 · Deduction for expenses of administering estate.
- 20.2053-4 · Deduction for claims against the estate.
- 20.2053-5 · Deductions for charitable, etc., pledges or subscriptions.
- 20.2053-6 · Deduction for taxes.
- 20.2053-7 · Deduction for unpaid mortgages.
- 20.2053-8 · Deduction for expenses in administering property not…
- 20.2053-9 · Deduction for certain State death taxes.
- 20.2053-10 · Deduction for certain foreign death taxes.
- 20.2054-1 · Deduction for losses from casualties or theft.
- 20.2055-1 · Deduction for transfers for public, charitable, and…
- 20.2055-2 · Transfers not exclusively for charitable purposes.
- 20.2055-3 · Effect of death taxes and administration expenses.
- 20.2055-4 · Disallowance of charitable, etc., deductions because of…
- 20.2055-5 · Disallowance of charitable, etc., deductions in the case of…
- 20.2055-6 · Disallowance of double deduction in the case of qualified…
- 20.2056-0 · Table of contents.
- 20.2056(a)-1 · (a)-1 Marital deduction; in general.
- 20.2056(a)-2 · (a)-2 Marital deduction; “deductible interests” and…
- 20.2056(b)-1 · (b)-1 Marital deduction; limitation in case of life…
- 20.2056(b)-2 · (b)-2 Marital deduction; interest in unidentified assets.
- 20.2056(b)-3 · (b)-3 Marital deduction; interest of spouse conditioned…
- 20.2056(b)-4 · (b)-4 Marital deduction; valuation of interest passing…
- 20.2056(b)-5 · (b)-5 Marital deduction; life estate with power of…
- 20.2056(b)-6 · (b)-6 Marital deduction; life insurance or annuity…