§ 7520. — Valuation tables.
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and December 19, 2003]
[CITE: 26USC7520]
TITLE 26--INTERNAL REVENUE CODE
Subtitle F--Procedure and Administration
CHAPTER 77--MISCELLANEOUS PROVISIONS
Sec. 7520. Valuation tables
(a) General rule
For purposes of this title, the value of any annuity, any interest
for life or a term of years, or any remainder or reversionary interest
shall be determined--
(1) under tables prescribed by the Secretary, and
(2) by using an interest rate (rounded to the nearest 2/10ths of
1 percent) equal to 120 percent of the Federal midterm rate in
effect under section 1274(d)(1) for the month in which the valuation
date falls.
If an income, estate, or gift tax charitable contribution is allowable
for any part of the property transferred, the taxpayer may elect to use
such Federal midterm rate for either of the 2 months preceding the month
in which the valuation date falls for purposes of paragraph (2). In the
case of transfers of more than 1 interest in the same property with
respect to which the taxpayer may use the same rate under paragraph (2),
the taxpayer shall use the same rate with respect to each such interest.
(b) Section not to apply for certain purposes
This section shall not apply for purposes of part I of subchapter D
of chapter 1 or any other provision specified in regulations.
(c) Tables
(1) In general
The tables prescribed by the Secretary for purposes of
subsection (a) shall contain valuation factors for a series of
interest rate categories.
(2) Initial table
Not later than the day 3 months after the date of the enactment
of this section, the Secretary shall prescribe initial tables for
purposes of subsection (a). Such tables may be based on the same
mortality experience as used for purposes of section 2031 on the
date of the enactment of this section.
(3) Revision for recent mortality charges
Not later than December 31, 1989, the Secretary shall revise the
initial tables prescribed for purposes of subsection (a) to take
into account the most recent mortality experience available as of
the time of such revision. Such tables shall be revised not less
frequently than once each 10 years thereafter to take into account
the most recent mortality experience available as of the time of the
revision.
(d) Valuation date
For purposes of this section, the term ``valuation date'' means the
date as of which the valuation is made.
(e) Tables to include formulas
For purposes of this section, the term ``tables'' includes formulas.
(Added Pub. L. 100-647, title V, Sec. 5031(a), Nov. 10, 1988, 102 Stat.
3668.)
References in Text
The date of the enactment of this section, referred to in subsec.
(c)(2), is the date of enactment of Pub. L. 100-647, which was approved
Nov. 10, 1988.
Codification
Another section 7520 was renumbered section 7521 of this title.
Effective Date
Section 5031(c) of Pub. L. 100-647 provided that: ``The amendments
made by this section [enacting this section] shall apply in cases where
the date as of which the valuation is to be made occurs on or after the
1st day of the 6th calendar month beginning after the date of the
enactment of this Act [Nov. 10, 1988].''
Section Referred to in Other Sections
This section is referred to in sections 664, 2702 of this title.
