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26 U.S.C. § 2502 — Rate of tax
Federal law — U.S. Code and appendices · legal_authorities
**(a) Computation of tax** The tax imposed by section 2501 for each calendar year shall be an amount equal to the excess of—
(1) a tentative tax, computed under section 2001(c), on the aggregate sum of the taxable gifts for such calendar year and for each of the preceding calendar periods, over
(2) a tentative tax, computed under such section, on the aggregate sum of the taxable gifts for each of the preceding calendar periods.
**(b) Preceding calendar period** Whenever used in this title in connection with the gift tax imposed by this chapter, the term “preceding calendar period” means—
(1) calendar years 1932 and 1970 and all calendar years intervening between calendar year 1932 and calendar year 1970,
(2) the first calendar quarter of calendar year 1971 and all calendar quarters intervening between such calendar quarter and the first calendar quarter of calendar year 1982, and
(3) all calendar years after 1981 and before the calendar year for which the tax is being computed.
For purposes of paragraph (1), the term “calendar year 1932” includes only that portion of such year after June 6, 1932.
**(c) Tax to be paid by donor** The tax imposed by section 2501 shall be paid by the donor.
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 2502
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Stable record: federal_law:legal_authorities:record_usc_7a8834e0e41c21fbc2d4f618
Source file: Laws/federal/codes/united-states-code/title-26/section-2502-rate-of-tax--0cce85bcfd.md
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Source location: Title 26, Chapter 12, § 2502; chapter-012-gift-tax.md
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**(a) Computation of tax** The tax imposed by section 2501 for each calendar year shall be an amount equal to the excess of—
(1) a tentative tax, computed under section 2001(c), on the aggregate sum of the taxable gifts for such calendar year and for each of the preceding calendar periods, over
(2) a tentative tax, computed under such section, on the aggregate sum of the taxable gifts for each of the preceding calendar periods.
**(b) Preceding calendar period** Whenever used in this title in connection with the gift tax imposed by this chapter, the term “preceding calendar period” means—
(1) calendar years 1932 and 1970 and all calendar years intervening between calendar year 1932 and calendar year 1970,
(2) the first calendar quarter of calendar year 1971 and all calendar quarters intervening between such calendar quarter and the first calendar quarter of calendar year 1982, and
(3) all calendar years after 1981 and before the calendar year for which the tax is being computed.
For purposes of paragraph (1), the term “calendar year 1932” includes only that portion of such year after June 6, 1932.
**(c) Tax to be paid by donor** The tax imposed by section 2501 shall be paid by the donor.
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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) In general** In computing taxable gifts for preceding calendar periods for purposes of computing the tax for any calendar year—
(1) there shall be treated as gifts such transfers as were considered to be gifts under the gift tax laws applicable to the calendar period in which the transfers were made,
(2) there shall be allowed such deductions as were provided for under such laws, and
(3) the specific exemption in the amount (if any) allowable under section 2521 (as in effect before its repeal by the Tax Reform Act of 1976) shall be applied in all computations in respect of preceding calendar periods ending before January 1, 1977, for purposes of computing the tax for any calendar year.
**(b) Exclusions from gifts for preceding calendar periods** In the case of gifts made to any person by the donor during preceding calendar periods, the amount excluded, if any, by the provisions of gift tax laws applicable to the periods in which the gifts were made shall not, for purposes of subsection (a), be included in the total amount of the gifts made during such preceding calendar periods.
**(c) Valuation of gifts** If the time has expired under section 6501 within which a tax may be assessed under this chapter 12 (or under corresponding provisions of prior laws) on—
(1) the transfer of property by gift made during a preceding calendar period (as defined in section 2502(b)); or
(2) an increase in taxable gifts required under section 2701(d),
the value thereof shall, for purposes of computing the tax under this chapter, be the value as finally determined (within the meaning of section 2001(f)(2)) for purposes of this chapter.
**(d) Net gifts** The term “net gifts” as used in the corresponding provisions of prior laws shall be read as “taxable gifts” for purposes of th
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 2504
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Scope** Subject to the limitations contained in this chapter, the tax imposed by section 2501 shall apply whether the transfer is in trust or otherwise, whether the gift is direct or indirect, and whether the property is real or personal, tangible or intangible; but in the case of a nonresident not a citizen of the United States, shall apply to a transfer only if the property is situated within the United States.
**(b) Intangible property** For purposes of this chapter, in the case of a nonresident not a citizen of the United States who is excepted from the application of section 2501(a)(2)—
(1) shares of stock issued by a domestic corporation, and
(2) debt obligations of—
(A) a United States person, or
(B) the United States, a State or any political subdivision thereof, or the District of Columbia,
which are owned and held by such nonresident shall be deemed to be property situated within the United States.
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 2511
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Federal law — U.S. Code and appendices · legal_authorities
**(a) General rule** In the case of a citizen or resident of the United States, there shall be allowed as a credit against the tax imposed by section 2501 for each calendar year an amount equal to—
(1) the applicable credit amount in effect under section 2010(c) which would apply if the donor died as of the end of the calendar year, reduced by
(2) the sum of the amounts allowable as a credit to the individual under this section for all preceding calendar periods.
For purposes of applying paragraph (2) for any calendar year, the rates of tax in effect under section 2502(a)(2) for such calendar year shall, in lieu of the rates of tax in effect for preceding calendar periods, be used in determining the amounts allowable as a credit under this section for all preceding calendar periods.
**(b) Adjustment to credit for certain gifts made before 1977** The amount allowable under subsection (a) shall be reduced by an amount equal to 20 percent of the aggregate amount allowed as a specific exemption under section 2521 (as in effect before its repeal by the Tax Reform Act of 1976) with respect to gifts made by the individual after September 8, 1976.
**(c) Limitation based on amount of tax** The amount of the credit allowed under subsection (a) for any calendar year shall not exceed the amount of the tax imposed by section 2501 for such calendar year.
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 2505
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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
### Statutory Notes
Section, act Aug. 16, 1954, ch. 736, 68A Stat. 410, allowed a deduction, in the case of a citizen or resident, an exemption of $30,000, less amounts claimed and allowed for calendar year 1932 and calendar years intervening between that year and year for which tax is being computed.
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 2521
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Federal law — U.S. Code and appendices · legal_authorities
Page 2634
TITLE 26—INTERNAL REVENUE CODE
§ 2502
(d) [amending this section] shall apply with respect to
gifts made after the date of the enactment of this Act
[Sept. 14, 1960].’’
EFFECTIVE DATE OF 1958 AMENDMENT
Amendment by Pub. L. 85–866 applicable to gifts made
after September 2, 1958, see section 102(d) of Pub. L.
85–866, set out as a note under section 2014 of this title.
CONSTRUCTION OF 2015 AMENDMENT
Pub. L. 114–113, div. Q, title IV, § 408(c), Dec. 18, 2015,
129 Stat. 3121, provided that: ‘‘Nothing in the amend-
ment made by subsection (a) [amending this section]
shall be construed to create any inference with respect
to whether any transfer of property (whether made be-
fore, on, or after the date of the enactment of this Act
[Dec. 18, 2015]) to an organization described in para-
graph (4), (5), or (6) of section 501(c) of the Internal Rev-
enue Code of 1986 is a transfer of property by gift for
purposes of chapter 12 of such Code.’’
ELECTION TO HAVE AMENDMENTS BY TITLE IV OF THE
ECONOMIC RECOVERY TAX ACT OF 1981 NOT APPLY
Pub. L. 97–448, title I, § 104(d)(3), Jan. 12, 1983, 96 Stat.
2383, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100
Stat. 2095, provided that:
‘‘(A) In the case of any decedent—
‘‘(i) who dies before August 13, 1984, and
‘‘(ii) who made a gift (before August 13, 1981, and
during the 3-year period ending on the date of the de-
cedent’s death) on which tax imposed by chapter 12 of
the Internal Revenue Code of 1986 [formerly I.R.C.
1954] has been paid before April 16, 1982,
such decedent’s executor may make an election to have
subtitle B of such Code (relating to estate and gift
taxes) applied with respect to such decedent without
regard to any of the amendments made by title IV of
the Economic Recovery Tax Act of
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 2502
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