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26 U.S.C. § 2505 — Unified credit against gift tax
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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Source file: Laws/federal/codes/united-states-code/title-26/section-2505-unified-credit-against-gift-tax--09d0845995.md
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Source location: Title 26, Chapter 12, § 2505; chapter-012-gift-tax.md
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**(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.
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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) General rule** A credit of the applicable credit amount shall be allowed to the estate of every decedent against the tax imposed by section 2001.
**(b) Adjustment to credit for certain gifts made before 1977** The amount of the credit 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 decedent after September 8, 1976.
**(c) Applicable credit amount**
(1) **In general** — For purposes of this section, the applicable credit amount is the amount of the tentative tax which would be determined under section 2001(c) if the amount with respect to which such tentative tax is to be computed were equal to the applicable exclusion amount.
(2) **Applicable exclusion amount** — For purposes of this subsection, the applicable exclusion amount is the sum of—
(A) the basic exclusion amount, and
(B) in the case of a surviving spouse, the deceased spousal unused exclusion amount.
(3) **Basic exclusion amount**
(A) *In general* — For purposes of this subsection, the basic exclusion amount is $15,000,000.
(B) *Inflation adjustment* — In the case of any decedent dying in a calendar year after 2026, the dollar amount in subparagraph (A) shall be increased by an amount equal to—
(i) such dollar amount, multiplied by
(ii) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting “calendar year 2025” for “calendar year 2016” in subparagraph (A)(ii) thereof.
If any amount as adjusted under the preceding sentence is not a multiple of $10,000, such amount shall be rounded to the nearest multiple of $10,000.
(4) **Decea
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 2010
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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
**(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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Federal law — U.S. Code and appendices · legal_authorities
Page 2638
TITLE 26—INTERNAL REVENUE CODE
§ 2505
Subsec. (b). Pub. L. 97–34, § 442(a)(4)(B), substituted in
heading ‘‘calendar periods’’ for ‘‘years and quarters’’
and in text ‘‘preceding calendar periods’’ for ‘‘preceding
calendar years and calendar quarters’’, ‘‘the periods’’
for ‘‘the years and calendar quarters’’, and ‘‘such pre-
ceding calendar periods’’ for ‘‘such years and calendar
quarters’’.
Subsec. (c). Pub. L. 97–34, § 442(a)(4)(C), substituted in
heading ‘‘calendar periods’’ for ‘‘calendar years and
quarters’’ and in text ‘‘preceding calendar period’’ for
‘‘preceding calendar year or calendar quarter’’ in four
places, ‘‘any calendar year’’ for ‘‘any calendar quar-
ter’’, and ‘‘section 2502(b)’’ for ‘‘section 2502(c)’’.
1976—Subsec. (a). Pub. L. 94–455 inserted ‘‘(as in effect
before its repeal by the Tax Reform Act of 1976)’’ after
‘‘section 2521’’ and ‘‘ending before January 1, 1977’’ after
‘‘years or calendar quarters’’ and substituted ‘‘of’’ for
‘‘to previous’’ after ‘‘computations in respect’’.
1970—Pub. L. 91–614 substituted ‘‘Taxable gifts for
preceding years and quarters’’ for ‘‘Taxable gifts for
preceding years’’ in section catchline.
Subsec. (a). Pub. L. 91–614 substituted ‘‘In computing
taxable gifts for the preceding calendar years or cal-
endar quarters for the purpose of computing the tax for
any calendar quarter,’’ for ‘‘In computing taxable gifts
for the calendar year 1954 and preceding calendar years
for the purpose of computing the tax for the calendar
year 1955 or any calendar year thereafter,’’ provided
that the laws applicable in the calendar quarters as
well as the years in which the transfers in question
were made shall apply, and substituted ‘‘previous cal-
endar years or calendar quarters for the purpose of
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 2505
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