### Question
How is the term nontax portion defined?


### Answer
The term **nontax portion** is defined in *26 U.S.C. § 2642* as the following:

> 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**

