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United States Code (Last Updated: May 24, 2014) |
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Title 26. INTERNAL REVENUE CODE |
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SubTitle B. Estate and Gift Taxes |
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Chapter 12. GIFT TAX |
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SubChapter A. Determination of Tax Liability |
§ 2501. Imposition of tax
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(a) Taxable transfers (1) General rule A tax, computed as provided in section 2502, is hereby imposed for each calendar year on the transfer of property by gift during such calendar year by any individual resident or nonresident.
(2) Transfers of intangible property Except as provided in paragraph (3), paragraph (1) shall not apply to the transfer of intangible property by a nonresident not a citizen of the United States.
(3) Exception (A) Certain individuals Paragraph (2) shall not apply in the case of a donor to whom section 877(b) applies for the taxable year which includes the date of the transfer.
(B) Credit for foreign gift taxes The tax imposed by this section solely by reason of this paragraph shall be credited with the amount of any gift tax actually paid to any foreign country in respect of any gift which is taxable under this section solely by reason of this paragraph.
(4) Transfers to political organizations Paragraph (1) shall not apply to the transfer of money or other property to a political organization (within the meaning of section 527(e)(1)) for the use of such organization.
(5) Transfers of certain stock (A) In general In the case of a transfer of stock in a foreign corporation described in subparagraph (B) by a donor to whom section 877(b) applies for the taxable year which includes the date of the transfer— (i) section 2511(a) shall be applied without regard to whether such stock is situated within the United States, and (ii) the value of such stock for purposes of this chapter shall be its U.S.-asset value determined under subparagraph (C). (B) Foreign corporation described A foreign corporation is described in this subparagraph with respect to a donor if— (i) the donor owned (within the meaning of section 958(a)) at the time of such transfer 10 percent or more of the total combined voting power of all classes of stock entitled to vote of the foreign corporation, and (ii) such donor owned (within the meaning of section 958(a)), or is considered to have owned (by applying the ownership rules of section 958(b)), at the time of such transfer, more than 50 percent of— (I) the total combined voting power of all classes of stock entitled to vote of such corporation, or (II) the total value of the stock of such corporation. (C) U.S.-asset value For purposes of subparagraph (A), the U.S.-asset value of stock shall be the amount which bears the same ratio to the fair market value of such stock at the time of transfer as— (i) the fair market value (at such time) of the assets owned by such foreign corporation and situated in the United States, bears to (ii) the total fair market value (at such time) of all assets owned by such foreign corporation. (b) Certain residents of possessions considered citizens of the United States A donor who is a citizen of the United States and a resident of a possession thereof shall, for purposes of the tax imposed by this chapter, be considered a “citizen” of the United States within the meaning of that term wherever used in this title unless he acquired his United States citizenship solely by reason of (1) his being a citizen of such possession of the United States, or (2) his birth or residence within such possession of the United States.
(c) Certain residents of possessions considered nonresidents not citizens of the United States A donor who is a citizen of the United States and a resident of a possession thereof shall, for purposes of the tax imposed by this chapter, be considered a “nonresident not a citizen of the United States” within the meaning of that term wherever used in this title, but only if such donor acquired his United States citizenship solely by reason of (1) his being a citizen of such possession of the United States, or (2) his birth or residence within such possession of the United States.
(d) Cross references (1) For increase in basis of property acquired by gift for gift tax paid, see section 1015(d). (2) For exclusion of transfers of property outside the United States by a nonresident who is not a citizen of the United States, see section 2511(a).
Amendments
2004—Subsec. (a)(3) to (5). Pub. L. 108–357 added pars. (3) and (5), redesignated former par. (5) as (4), and struck out former pars. (3) and (4) which related to exception of certain individuals from taxable transfers and burden of proof.
1997—Subsec. (a)(3)(C). Pub. L. 105–34 substituted “donor” for “decedent”.
1996—Subsec. (a)(3). Pub. L. 104–191, § 511(e)(2), substituted “Exception” for “Exceptions” in heading and amended text generally. Prior to amendment, text read as follows: “Paragraph (2) shall not apply in the case of a donor who at any time after
“(A) such donor’s loss of United States citizenship resulted from the application of section 301(b), 350, or 355 of the Immigration and Nationality Act, as amended (8 U.S.C. 1401(b), 1482, or 1487), or
“(B) such loss did not have for one of its principal purposes the avoidance of taxes under this subtitle or subtitle A.”
Subsec. (a)(3)(E). Pub. L. 104–191, § 511(f)(2)(B), added subpar. (E).
1990—Subsec. (d)(3). Pub. L. 101–508 struck out par. (3) which read as follows: “For treatment of certain transfers related to estate tax valuation freezes as gifts to which this chapter applies, see section 2036(c)(4).”
1988—Subsec. (d)(3). Pub. L. 100–647 added par. (3).
1981—Subsec. (a)(1), (4). Pub. L. 97–34 substituted “calendar year” for “calendar quarter” wherever appearing.
1976—Subsec. (a)(1). Pub. L. 94–455 inserted “for each calendar quarter” after “hereby imposed” and struck out “For the first calendar quarter of calendar year 1971 and each calendar quarter thereafter” after “General rule-”.
Subsec. (a)(4). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
1975—Subsec. (a)(5). Pub. L. 93–625 added par. (5).
1970—Subsec. (a)(1). Pub. L. 91–614, § 102(a)(1)(A), substituted “For the first calendar quarter of the calendar year 1971 and each calendar quarter thereafter” for “For the calendar year 1955 and each calendar year thereafter” and “during such calendar quarter” for “during such calendar year”.
Subsec. (a)(4). Pub. L. 91–614, § 102(a)(1)(B), substituted “calendar quarter” for “calendar year”.
1966—Subsec. (a). Pub. L. 89–809 redesignated existing provisions as par. (1), struck out “, except transfers of intangible property by a nonresident not a citizen of the United States and who was not engaged in business in the United States during such calendar year” after “resident or nonresident”, and added pars. (2) to (4).
1960—Subsec. (a). Pub. L. 86–779, § 4(d)(2), struck out “who is” before “not a citizen”.
Subsecs. (c), (d). Pub. L. 86–779, § 4(d)(1), added subsec. (c) and redesignated former subsec. (c) as (d).
1958—Subsec. (b). Pub. L. 85–866, § 102(b), added subsec. (b) and redesignated former subsec. (b) as (c).
Subsec. (c). Pub. L. 85–866, § 102(b), redesignated former subsec. (b) as (c) and Pub. L. 85–866, § 43(b), made the heading read in the plural, designated existing provisions as par. (2) and added par. (1).
Effective Date Of Amendment
Amendment by Pub. L. 108–357 applicable to individuals who expatriate after
Amendment by Pub. L. 105–34 effective as if included in the provisions of the Health Insurance Portability and Accountability Act of 1996, Pub. L. 104–191, to which such amendment relates, see section 1602(i) of Pub. L. 105–34, set out as a note under section 26 of this title.
Amendment by Pub. L. 104–191 applicable to individuals losing United States citizenship on or after
Amendment by Pub. L. 101–508 applicable in the case of property transferred after
Amendment by Pub. L. 100–647 applicable in cases where transfer referred to in section 2036(c)(1)(B) of this title is on or after
Pub. L. 97–34, title IV, § 442(e),
Pub. L. 94–455, title XIX, § 1902(c)(2),
Pub. L. 93–625, § 14(b),
Pub. L. 91–614, title I, § 102(e),
Pub. L. 89–809, title I, § 109(c),
Pub. L. 86–779, § 4(e)(3),
Amendment by Pub. L. 85–866 applicable to gifts made after
Miscellaneous
Pub. L. 97–448, title I, § 104(d)(3),