### Question
How does Applicable Rate; Inclusion Ratio define nontax portion?


### Answer
Under *26 U.S.C. § 2642*, **nontax portion** is defined as:

> the product of—



(A) the value of all of the property in the trust, and



(B) the applicable fraction in effect for such trust

#### Citation:
  - *26 U.S.C. § 2642*
  - Heading: **Subtitle B-Estate and Gift Taxes > CHAPTER 13-TAX ON GENERATION-SKIPPING TRANSFERS > Subchapter E-Applicable Rate; Inclusion Ratio**

