---
kind: "section"
citation: "26 U.S.C. § 273"
title: "26"
title_heading: "Internal Revenue Code"
number: "273"
heading: "Holders of life or terminable interest"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/26/273"
units:
  - "Subtitle A — Income Taxes"
  - "Chapter 1 — Normal Taxes and Surtaxes"
  - "Subchapter B — Computation of Taxable Income"
  - "Part IX — Items Not Deductible"
---

# §273. Holders of life or terminable interest


Amounts paid under the laws of a State, the District of Columbia, a possession of the [United States](/usc/26/993.md?p=g), or a foreign country as income to the holder of a life or terminable [interest](/usc/26/856.md?p=f-1) acquired by gift, bequest, or inheritance shall not be reduced or diminished by any deduction for shrinkage (by whatever name called) in the [value](/usc/26/851.md?p=c-4) of such [interest](/usc/26/856.md?p=f-1) due to the lapse of time.


## Source credit

(Aug. 16, 1954, ch. 736, 68A Stat. 83; Pub. L. 94–455, title XIX, § 1901(c)(2), Oct. 4, 1976, 90 Stat. 1803.)

## Notes

### Editorial Notes

### Amendments

1976—Pub. L. 94–455 struck out reference to amounts paid under laws of a Territory.

### Statutory Notes and Related Subsidiaries

### Effective Date of 1976 Amendment

Amendment by Pub. L. 94–455 effective for taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94–455, set out as a note under section 2 of this title.