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26 U.S.C. § 2503 — Taxable gifts
Federal law — U.S. Code and appendices · legal_authorities
**(a) General definition** The term “taxable gifts” means the total amount of gifts made during the calendar year, less the deductions provided in subchapter C (section 2522 and following).
**(b) Exclusions from gifts**
(1) **In general** — In the case of gifts (other than gifts of future interests in property) made to any person by the donor during the calendar year, the first $10,000 of such gifts to such person shall not, for purposes of subsection (a), be included in the total amount of gifts made during such year. Where there has been a transfer to any person of a present interest in property, the possibility that such interest may be diminished by the exercise of a power shall be disregarded in applying this subsection, if no part of such interest will at any time pass to any other person.
(2) **Inflation adjustment** — In the case of gifts made in a calendar year after 1998, the $10,000 amount contained in paragraph (1) shall be increased by an amount equal to—
(A) $10,000, multiplied by
(B) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting “calendar year 1997” for “calendar year 2016” in subparagraph (A)(ii) thereof.
If any amount as adjusted under the preceding sentence is not a multiple of $1,000, such amount shall be rounded to the next lowest multiple of $1,000.
**(c) Transfer for the benefit of minor** No part of a gift to an individual who has not attained the age of 21 years on the date of such transfer shall be considered a gift of a future interest in property for purposes of subsection (b) if the property and the income therefrom—
(1) may be expended by, or for the benefit of, the donee before his attaining the age of 21 years, and
(2) will to the extent not so expended—
(A) pass to t
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Stable record: federal_law:legal_authorities:record_usc_34aff2c0b85edf770dc3a386
Source file: Laws/federal/codes/united-states-code/title-26/section-2503-taxable-gifts--d5c45a74c1.md
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Source location: Title 26, Chapter 12, § 2503; chapter-012-gift-tax.md
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**(a) General definition** The term “taxable gifts” means the total amount of gifts made during the calendar year, less the deductions provided in subchapter C (section 2522 and following).
**(b) Exclusions from gifts**
(1) **In general** — In the case of gifts (other than gifts of future interests in property) made to any person by the donor during the calendar year, the first $10,000 of such gifts to such person shall not, for purposes of subsection (a), be included in the total amount of gifts made during such year. Where there has been a transfer to any person of a present interest in property, the possibility that such interest may be diminished by the exercise of a power shall be disregarded in applying this subsection, if no part of such interest will at any time pass to any other person.
(2) **Inflation adjustment** — In the case of gifts made in a calendar year after 1998, the $10,000 amount contained in paragraph (1) shall be increased by an amount equal to—
(A) $10,000, multiplied by
(B) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting “calendar year 1997” for “calendar year 2016” in subparagraph (A)(ii) thereof.
If any amount as adjusted under the preceding sentence is not a multiple of $1,000, such amount shall be rounded to the next lowest multiple of $1,000.
**(c) Transfer for the benefit of minor** No part of a gift to an individual who has not attained the age of 21 years on the date of such transfer shall be considered a gift of a future interest in property for purposes of subsection (b) if the property and the income therefrom—
(1) may be expended by, or for the benefit of, the donee before his attaining the age of 21 years, and
(2) will to the extent not so expended—
(A) pass to the donee on his attaining the age of 21 years, and
(B) in the event the donee dies before attaining the age of 21 years, be payable to the estate of the donee or as he may appoint under a general power of appointment as defined in section 2514(c).
**(d) Repealed. Pub. L. 97–34, title III, § 311(h)(5), Aug. 13, 1981, 95 Stat. 282]**
**(e) Exclusion for certain transfers for educational expenses or medical expenses**
(1) **In general** — Any qualified transfer shall not be treated as a transfer of property by gift for purposes of this chapter.
(2) **Qualified transfer** — For purposes of this subsection, the term “qualified transfer” means any amount paid on behalf of an individual—
(A) as tuition to an educational organization described in section 170(b)(1)(A)(ii) for the education or training of such individual, or
(B) to any person who provides medical care (as defined in section 213(d)) with respect to such individual as payment for such medical care.
**(f) Waiver of certain pension rights** If any individual waives, before the death of a participant, any survivor benefit, or right to such benefit, under section 401(a)(11) or 417, such waiver shall not be treated as a transfer of property by gift for purposes of this chapter.
**(g) Treatment of certain loans of artworks**
(1) **In general** — For purposes of this subtitle, any loan of a qualified work of art shall not be treated as a transfer (and the value of such qualified work of art shall be determined as if such loan had not been made) if—
(A) such loan is to an organization described in section 501(c)(3) and exempt from tax under section 501(c) (other than a private foundation), and
(B) the use of such work by such organization is related to the purpose or function constituting the basis for its exemption under section 501.
(2) **Definitions** — For purposes of this section—
(A) *Qualified work of art* — The term “qualified work of art” means any archaeological, historic, or creative tangible personal property.
(B) *Private foundation* — The term “private foundation” has the meaning given such term by section 509, except that such term shall not include any private operating foundation (as defined in section 4942(j)(3)).
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Imposition** A tax is hereby imposed on the transfer of the taxable estate of every decedent who is a citizen or resident of the United States.
**(b) Computation of tax** The tax imposed by this section shall be the amount equal to the excess (if any) of—
(1) a tentative tax computed under subsection (c) on the sum of—
(A) the amount of the taxable estate, and
(B) the amount of the adjusted taxable gifts, over
(2) the aggregate amount of tax which would have been payable under chapter 12 with respect to gifts made by the decedent after December 31, 1976, if the modifications described in subsection (g) had been applicable at the time of such gifts.
For purposes of paragraph (1)(B), the term “adjusted taxable gifts” means the total amount of the taxable gifts (within the meaning of section 2503) made by the decedent after December 31, 1976, other than gifts which are includible in the gross estate of the decedent.
**(c) Rate schedule** If the amount with respect to which the tentative tax to be computed is:The tentative tax is: Not over $10,00018 percent of such amount. Over $10,000 but not over $20,000$1,800, plus 20 percent of the excess of such amount over $10,000. Over $20,000 but not over $40,000$3,800, plus 22 percent of the excess of such amount over $20,000. Over $40,000 but not over $60,000$8,200 plus 24 percent of the excess of such amount over $40,000. Over $60,000 but not over $80,000$13,000, plus 26 percent of the excess of such amount over $60,000. Over $80,000 but not over $100,000$18,200, plus 28 percent of the excess of such amount over $80,000. Over $100,000 but not over $150,000$23,800, plus 30 percent of the excess of such amount over $100,000. Over $150,000 but not over $250,000$38,800, plus 32 percent of the excess of such amount ove
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 2001
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Allowance of deduction** In the case of an individual, there shall be allowed as a deduction an amount equal to the qualified retirement contributions of the individual for the taxable year.
**(b) Maximum amount of deduction**
(1) **In general** — The amount allowable as a deduction under subsection (a) to any individual for any taxable year shall not exceed the lesser of—
(A) the deductible amount, or
(B) an amount equal to the compensation includible in the individual’s gross income for such taxable year.
(2) **Special rule for employer contributions under simplified employee pensions** — This section shall not apply with respect to an employer contribution to a simplified employee pension.
(3) **Plans under section 501(c)(18)** — Notwithstanding paragraph (1), the amount allowable as a deduction under subsection (a) with respect to any contributions on behalf of an employee to a plan described in section 501(c)(18) shall not exceed the lesser of—
(A) $7,000, or
(B) an amount equal to 25 percent of the compensation (as defined in section 415(c)(3)) includible in the individual’s gross income for such taxable year.
(4) **Special rule for simple retirement accounts** — This section shall not apply with respect to any amount contributed to a simple retirement account established under section 408(p).
(5) **Deductible amount** — For purposes of paragraph (1)(A)—
(A) *In general* — The deductible amount is $5,000.
(B) *Catch-up contributions for individuals 50 or older*
(i) *In general* — In the case of an individual who has attained the age of 50 before the close of the taxable year, the deductible amount for such taxable year shall be increased by the applicable amount.
(ii) *Applicable amount* — For purposes of clause (i), the app
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 219
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Married individuals filing joint returns and surviving spouses** There is hereby imposed on the taxable income of—
(1) every married individual (as defined in section 7703) who makes a single return jointly with his spouse under section 6013, and
(2) every surviving spouse (as defined in section 2(a)),
a tax determined in accordance with the following table: If taxable income is:The tax is: Not over $36,90015% of taxable income. Over $36,900 but not over $89,150$5,535, plus 28% of the excess over $36,900. Over $89,150 but not over $140,000$20,165, plus 31% of the excess over $89,150. Over $140,000 but not over $250,000$35,928.50, plus 36% of the excess over $140,000. Over $250,000$75,528.50, plus 39.6% of the excess over $250,000.
**(b) Heads of households** There is hereby imposed on the taxable income of every head of a household (as defined in section 2(b)) a tax determined in accordance with the following table: If taxable income is:The tax is: Not over $29,60015% of taxable income. Over $29,600 but not over $76,400$4,440, plus 28% of the excess over $29,600. Over $76,400 but not over $127,500$17,544, plus 31% of the excess over $76,400. Over $127,500 but not over $250,000$33,385, plus 36% of the excess over $127,500. Over $250,000$77,485, plus 39.6% of the excess over $250,000.
**(c) Unmarried individuals (other than surviving spouses and heads of households)** There is hereby imposed on the taxable income of every individual (other than a surviving spouse as defined in section 2(a) or the head of a household as defined in section 2(b)) who is not a married individual (as defined in section 7703) a tax determined in accordance with the following table: If taxable income is:The tax is: Not over $22,10015% of taxable income. Over $22,100 but not over $53,50
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 1
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Federal law — U.S. Code and appendices · legal_authorities
**(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
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 2501
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Requirements for qualification** A trust created or organized in the United States and forming part of a stock bonus, pension, or profit-sharing plan of an employer for the exclusive benefit of his employees or their beneficiaries shall constitute a qualified trust under this section—
(1) if contributions are made to the trust by such employer, or employees, or both, or by another employer who is entitled to deduct his contributions under section 404(a)(3)(B) (relating to deduction for contributions to profit-sharing and stock bonus plans), or by a charitable remainder trust pursuant to a qualified gratuitous transfer (as defined in section 664(g)(1)), for the purpose of distributing to such employees or their beneficiaries the corpus and income of the fund accumulated by the trust in accordance with such plan;
(2) if under the trust instrument it is impossible, at any time prior to the satisfaction of all liabilities with respect to employees and their beneficiaries under the trust, for any part of the corpus or income to be (within the taxable year or thereafter) used for, or diverted to, purposes other than for the exclusive benefit of his employees or their beneficiaries (but this paragraph shall not be construed, in the case of a multiemployer plan, to prohibit the return of a contribution within 6 months after the plan administrator determines that the contribution was made by a mistake of fact or law (other than a mistake relating to whether the plan is described in section 401(a) or the trust which is part of such plan is exempt from taxation under section 501(a), or the return of any withdrawal liability payment determined to be an overpayment within 6 months of such determination));
(3) if the plan of which such trust is a part satisfies the requireme
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 401
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Federal law — U.S. Code and appendices · legal_authorities
Page 2635
TITLE 26—INTERNAL REVENUE CODE
§ 2503
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 2010 AMENDMENT
Pub. L. 111–312, title III, § 302(b)(2), Dec. 17, 2010, 124
Stat. 3301, provided that the amendment by section
302(b)(2) is effective on and after Jan. 1, 2011.
EFFECTIVE DATE OF 2001 AMENDMENT
Pub. L. 107–16, title V, § 511(f)(3), June 7, 2001, 115 Stat.
71, provided that: ‘‘The amendments made by sub-
sections (d) and (e) [amending this section and section
2511 of this title] shall apply to gifts made after Decem-
ber 31, 2009.’’
EFFECTIVE DATE OF 1987 AMENDMENT
Amendment by Pub. L. 100–203 applicable in the case
of decedents dying, and gifts made, after Dec. 31, 1987,
see section 10401(c) of Pub. L. 100–203, set out as a note
under section 2001 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by Pub. L. 97–34 applicable with respect
to gifts made after Dec. 31, 1981, see section 442(e) of
Pub. L. 97–34, set out as a note under section 2501 of
this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Pub. L. 94–455, title XX, § 2001(d)(2), Oct. 4, 1976, 90
Stat. 1854, provided that: ‘‘The amendments made by
subsections (b) and (c)(2) [enacting section 2505 of this
title, amending this section and section 2504 of this
title, and repealing section 2521 of this title] shall apply
to gifts made after December 31, 1976.’’
EFFECTIVE DATE OF 1970 AMENDMENT
Amendment by Pub. L. 91–614 applicable with respect
to gifts made after Dec. 31, 1970, see section 102(e) of
Pub. L. 91–614, set out as a note under section 2501 of
this title.
§ 2503. Taxable gifts
(a) General definition
The term ‘‘taxable gifts’’ means the total
amount of gifts made during the calendar year,
less the deductions provided in subchapter C
(section 2522 and f
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 2503
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