26 U.S.C. § 2511 — Transfers in general

Page 2639 TITLE 26—INTERNAL REVENUE CODE § 2511 2001—Subsec. (a)(1). Pub. L. 107–16, § 521(b)(2), amend- ed par. (1) generally. Prior to amendment, par. (1) read as follows: ‘‘the applicable credit amount in effect under section 2010(c) for such calendar year (deter- mined as if the applicable exclusion amount were $1,000,000), reduced by’’. Pub. L. 107–16, § 521(b)(1), inserted ‘‘(determined as if the applicable exclusion amount were $1,000,000)’’ after ‘‘calendar year’’. 1997—Subsec. (a)(1). Pub. L. 105–34 substituted ‘‘the applicable credit amount in effect under section 2010(c) for such calendar year’’ for ‘‘$192,800’’. 1990—Subsecs. (b) to (d). Pub. L. 101–508 redesignated subsecs. (c) and (d) as subsecs. (b) and (c), respectively, and struck out former subsec. (b) which provided for a phase-in of the unified credit against gift tax. 1981—Subsec. (a). Pub. L. 97–34, § 442(a)(5)(A), sub- stituted in provision preceding par. (1) ‘‘year’’ for ‘‘quarter’’, and ‘‘periods’’ for ‘‘quarters’’ in par. (2). Subsec. (a)(1). Pub. L. 97–34, § 401(b)(1), substituted ‘‘$192,800’’ for ‘‘$47,000’’. Subsec. (b). Pub. L. 97–34, § 401(b)(2), struck out from heading ‘‘$47,000’’ before ‘‘credit’’, substituted subsec. (a)(1) substitutions for ‘‘$192,800’’ of amounts of ‘‘$62,800’’, ‘‘$79,300’’, ‘‘$96,300’’, ‘‘$121,800’’, and ‘‘$155,800’’ in the case of gifts made in 1982, 1983, 1984, 1985, and 1986, respectively, for subsec. (a)(1) substitutions for ‘‘$47,000’’ of amounts of ‘‘$6,000’’, ‘‘$30,000’’, ‘‘$34,000’’, ‘‘$38,000’’, and ‘‘$42,500’’ in the case of gifts made after Dec. 31, 1976, and before July 1, 1977, after June 30, 1977, and before Jan. 1, 1978; after Dec. 31, 1977, and before Jan. 1, 1979, after Dec. 31, 1978, and before Jan. 1, 1980, and after Dec. 31, 1979, and before Jan. 1, 1981, respec- tively. Subsec. (d). Pub. L. 97–34, § 442(a)(5)(B), substituted ‘‘year’’ for ‘‘quarter’’ in two places. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Pub. L. 111–312, title III, § 301(b), Dec. 17, 2010, 124 Stat. 3300, provided that the amendment by section 301(b) is effective on and after Jan. 1, 2011. Pub. L. 111–312, title III, § 302(b)(1)(B), Dec. 17, 2010, 124 Stat. 3301, provided that: ‘‘The amendment made by this paragraph [amending this section] shall apply to gifts made after December 31, 2010.’’ Amendment by section 302(d)(2) of Pub. L. 111–312 ap- plicable to estates of decedents dying, generation-skip- ping transfers, and gifts made, after Dec. 31, 2009, see section 302(f) of Pub. L. 111–312, set out as a note under section 2001 of this title. Amendment by section 303(b)(1) of Pub. L. 111–312 ap- plicable to estates of decedents dying and gifts made after Dec. 31, 2010, see section 303(c)(1) of Pub. L. 111–312, set out as a note under section 2010 of this title. EFFECTIVE DATE OF 2001 AMENDMENT Amendment by section 521(b)(1) of Pub. L. 107–16 ap- plicable to estates of decedents dying, and gifts made, after Dec. 31, 2001, and amendment by section 521(b)(2) of Pub. L. 107–16 applicable to gifts made after Dec. 31, 2009, see section 521(e)(1), (2) of Pub. L. 107–16, set out as a note under section 2010 of this title. EFFECTIVE DATE OF 1997 AMENDMENT Amendment by Pub. L. 105–34 applicable to estates of decedents dying, and gifts made, after Dec. 31, 1997, see section 501(f) of Pub. L. 105–34, set out as a note under section 2001 of this title. EFFECTIVE DATE OF 1981 AMENDMENT Pub. L. 97–34, title IV, § 401(c)(2), Aug. 13, 1981, 95 Stat. 300, provided that: ‘‘The amendments made by sub- section (b) [amending this section] shall apply to gifts made after such date [Dec. 31, 1981].’’ Amendment by section 442(a)(5) of Pub. L. 97–34 appli- cable 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. SAVINGS PROVISION For provisions that nothing in amendment by Pub. L. 101–508 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Nov. 5, 1990, for purposes of determining liabil- ity for tax for periods ending after Nov. 5, 1990, see sec- tion 11821(b) of Pub. L. 101–508, set out as a note under section 45K of this title. Subchapter B—Transfers Sec. 2511. Transfers in general. 2512. Valuation of gifts. 2513. Gift by husband or wife to third party. 2514. Powers of appointment. 2515. Treatment of generation-skipping transfer tax. [2515A. Repealed.] 2516. Certain property settlements. [2517. Repealed.] 2518. Disclaimers. 2519. Dispositions of certain life estates. Editorial Notes AMENDMENTS 1986—Pub. L. 99–514, title XIV, § 1432(d)(2), title XVIII, § 1852(e)(2)(B), Oct. 22, 1986, 100 Stat. 2730, 2868, added item 2515 and struck out item 2517 ‘‘Certain annuities under qualified plans’’. 1981—Pub. L. 97–34, title IV, § 403(c)(3)(C), (d)(3)(B)(ii), Aug. 13, 1981, 95 Stat. 302, 304, as amended Pub. L. 97–448, title I, § 104(a)(3)(B), Jan. 12, 1983, 96 Stat. 2380, struck out items 2515 ‘‘Tenancies by the entirety in real property’’ and 2515A ‘‘Tenancies by the entirety in personal property’’ and added item 2519. 1978—Pub. L. 95–600, title VII, § 702(k)(1)(C), Nov. 6, 1978, 92 Stat. 2932, substituted in item 2515 ‘‘Tenancies by the entirety in real property’’ for ‘‘Tenancies by the entirety’’ and added item 2515A. 1976—Pub. L. 94–455, title XX, § 2009(b)(3)(A), Oct. 4, 1976, 90 Stat. 1894, added item 2518. 1958—Pub. L. 85–866, title I, § 68(b), Sept. 2, 1958, 72 Stat. 1659, added item 2517. § 2511. Transfers in general (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 other- wise, whether the gift is direct or indirect, and whether the property is real or personal, tan- gible or intangible; but in the case of a non- resident not a citizen of the United States, shall apply to a transfer only if the property is situ- ated 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 cor- poration, and (2) debt obligations of— (A) a United States person, or (B) the United States, a State or any polit- ical 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. (Aug. 16, 1954, ch. 736, 68A Stat. 406; Pub. L. 89–809, title I, § 109(b), Nov. 13, 1966, 80 Stat. 1575; Page 2640 TITLE 26—INTERNAL REVENUE CODE § 2512 Pub. L. 107–16, title V, § 511(e), June 7, 2001, 115 Stat. 71; Pub. L. 107–147, title IV, § 411(g)(1), Mar. 9, 2002, 116 Stat. 46; Pub. L. 111–312, title III, § 302(e), Dec. 17, 2010, 124 Stat. 3302.) Editorial Notes AMENDMENTS 2010—Subsec. (c). Pub. L. 111–312 struck out subsec. (c). Text read as follows: ‘‘Notwithstanding any other provision of this section and except as provided in regu- lations, a transfer in trust shall be treated as a transfer of property by gift, unless the trust is treated as wholly owned by the donor or the donor’s spouse under subpart E of part I of subchapter J of chapter 1.’’ 2002—Subsec. (c). Pub. L. 107–147 substituted ‘‘transfer of property by gift,’’ for ‘‘taxable gift under section 2503,’’. 2001—Subsec. (c). Pub. L. 107–16 added subsec. (c). 1966—Subsec. (b). Pub. L. 89–809 inserted reference to nonresidents who are excepted from the application of section 2501(a)(2) and expanded section to include debt obligations of United States persons or the United States, a State or any political subdivision thereof, or the District of Columbia. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–312 applicable to estates of decedents dying, generation-skipping transfers, and gifts made, after Dec. 31, 2009, see section 302(f) of Pub. L. 111–312, set out as a note under section 2001 of this title. EFFECTIVE DATE OF 2002 AMENDMENT Amendment by Pub. L. 107–147 effective as if included in the provisions of the Economic Growth and Tax Re- lief Reconciliation Act of 2001, Pub. L. 107–16, to which such amendment relates, see section 411(x) of Pub. L. 107–147, set out as a note under section 25B of this title. EFFECTIVE DATE OF 2001 AMENDMENT Amendment by Pub. L. 107–16 applicable to gifts made after Dec. 31, 2009, see section 511(f)(3) of Pub. L. 107–16, set out as a note under section 2502 of this title. EFFECTIVE DATE OF 1966 AMENDMENT Amendment by Pub. L. 89–809 applicable with respect to calendar year 1967 and all calendar years thereafter, see section 109(c) of Pub. L. 89–809, set out as a note under section 2501 of this title. § 2512. Valuation of gifts (a) If the gift is made in property, the value thereof at the date of the gift shall be consid- ered the amount of the gift. (b) Where property is transferred for less than an adequate and full consideration in money or money’s worth, then the amount by which the value of the property exceeded the value of the consideration shall be deemed a gift, and shall be included in computing the amount of gifts made during the calendar year. (c) Cross reference For individual’s right to be furnished on request a statement regarding any valuation made by the Secretary of a gift by that individual, see section 7517. (Aug. 16, 1954, ch. 736, 68A Stat. 406; Pub. L. 91–614, title I, § 102(b)(1), Dec. 31, 1970, 84 Stat. 1840; Pub. L. 94–455, title XX, § 2008(a)(2)(B), Oct. 4, 1976, 90 Stat. 1891; Pub. L. 97–34, title IV, § 442(b)(1), Aug. 13, 1981, 95 Stat. 322.) Editorial Notes AMENDMENTS 1981—Subsec. (b). Pub. L. 97–34 substituted ‘‘calendar year’’ for ‘‘calendar quarters’’. 1976—Subsec. (c). Pub. L. 94–455 added subsec. (c). 1970—Subsec. (b). Pub. L. 91–614 substituted ‘‘calendar quarter’’ for ‘‘calendar year’’. Statutory Notes and Related Subsidiaries 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 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. § 2513. Gift by husband or wife to third party (a) Considered as made one-half by each (1) In general A gift made by one spouse to any person other than his spouse shall, for the purposes of this chapter, be considered as made one-half by him and one-half by his spouse, but only if at the time of the gift each spouse is a citizen or resident of the United States. This para- graph shall not apply with respect to a gift by a spouse of an interest in property if he cre- ates in his spouse a general power of appoint- ment, as defined in section 2514(c), over such interest. For purposes of this section, an indi- vidual shall be considered as the spouse of an- other individual only if he is married to such individual at the time of the gift and does not remarry during the remainder of the calendar year. (2) Consent of both spouses Paragraph (1) shall apply only if both spouses have signified (under the regulations provided for in subsection (b)) their consent to the application of paragraph (1) in the case of all such gifts made during the calendar year by either while married to the other. (b) Manner and time of signifying consent (1) Manner A consent under this section shall be sig- nified in such manner as is provided under reg- ulations prescribed by the Secretary. (2) Time Such consent may be so signified at any time after the close of the calendar year in which the gift was made, subject to the fol- lowing limitations— (A) The consent may not be signified after the 15th day of April following the close of such year, unless before such 15th day no re- turn has been filed for such year by either spouse, in which case the consent may not be signified after a return for such year is filed by either spouse. (B) The consent may not be signified after a notice of deficiency with respect to the tax for such year has been sent to either spouse in accordance with section 6212(a).