PUBLIC LAWS-OH. 619-OCT. 21, 1942 53 Stat. 12, 14. 26 U. .C. 23 (b), <C), (m); Supp. I, § 23 (c). Ante, pp. 819, 806 , 820. Post, p. 857. 53 Stat. 24. 26 U.S. C. 31. "Estate tax." 63 Stat. 120, 129. 26u.s. 0. 810, 860. 53 Stat. 141. 26 U.S. C.. 936; Sup. I, 1935. "'oa, P. 901. "(b) ALLOWANCE OF DEDUCTIONS AND CREDrr.-T he amount of any deduction specified in section 23 (a), (b), (c), or (m) (relating to deductions for expenses, interest, taxes, and depletion) or credit specified in section 31 (foreign tax credit), in respect of a decedent which is not properly allowable to the decedent in respect of the taxable period in which falls the date of his death, or a prior period, shall be allowed: "(1) EXPENSES, INTEREST, AND TAXES. -In the case of a deduc- tion specified in section 23 (a), (b), or (c) and a credit specified in section 31, in the taxable year when paid,- "(A) to the estate of the decedent; except that "(B) if the estate of the decedent is not liable to dis- charge the obligation to which the deduction or credit relates, to the person who, by reason of the death of the decedent or by bequest, devise, or inheritance acquires, sub- ject to such obligation, from the decedent an interest in property of the decedent. "(2) DEPLETION. - In the case of the deduction specified in sec- tion 23 (m), to the person described in subsection (a) (1) (A), (B), or (C) who, in the manner described therein, receives the income to which the deduction relates, in the taxable year when such income is received. "(c) DEDUCTION FO ESTATE TAX. - "(1) ALLOWANCE OF DEDUCTION.-A person who includes an amount in gross income under subsection (a) shall be allowed, for the same taxable year, as a deduction an amount which bears the same ratio to the estate tax attributable to the net value for estate tax purposes of all the items described in subsection (a) (1) as the value for estate tax purposes of the items of gross income or portions thereof in respect of which such person included the amount in gross income (or the amount included in gross income, whichever is lower) bears to the value for estate tax purposes of all the items described in subsection (a) (1). "(2) METHOD OF COMPUTING DEDUCTION.-For the purposes of paragraph (1): "(A) The term 'estate tax' means the tax imposed upon the estate of the decedent under section 810 or 860, reduced by the credits against such tax, plus the tax imposed upon the estate of the decedent under section 935, reduced by the credits against such tax. "(B) The net value for estate tax purposes of all the items described in subsection (a) (1) shall be the excess of the value for estate tax purposes of all the items described in subsection (a) (1) over the deductions from the gross estate in respect of claims which represent the deductions and credit described in subsection (b). "(C) The estate tax attributable to such net value shall be an amount equal to the excess of the estate tax over the estate tax computed without including in the gross estate such net value." (f) ErFECTVE DATE OF AMENDMENTs. - The amendments made by subsections (a) and (b) of this section shall be applicable with respect to taxable years beginning after December 31, 1942, and the amend- ments made by subsections (c), (d), and (e) of this section shall be applicable with respect to taxable years ending after December 31, 1942. (g) TAxAn YBns BxFoim 1943. -In case the taxable period in which falls the date of the death of the decedent began after Decem- [56 STAT.
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