26 U.S.C. § 2521 — Untitled legal text

Page 2644 TITLE 26—INTERNAL REVENUE CODE [§ 2521 come interest for life in any property to which this section applies shall be treated as a transfer of all interests in such property other than the qualifying income interest. (b) Property to which this subsection applies This section applies to any property if a de- duction was allowed with respect to the transfer of such property to the donor— (1) under section 2056 by reason of subsection (b)(7) thereof, or (2) under section 2523 by reason of subsection (f) thereof. (c) Cross reference For right of recovery for gift tax in the case of property treated as transferred under this section, see section 2207A(b). (Added Pub. L. 97–34, title IV, § 403(d)(3)(B)(i), Aug. 13, 1981, 95 Stat. 304; amended Pub. L. 97–448, title I, § 104(a)(3), (7), Jan. 12, 1983, 96 Stat. 2380, 2381.) Editorial Notes AMENDMENTS 1983—Pub. L. 97–448, § 104(a)(3)(B), amended directory language of Pub. L. 97–34, § 403(d)(3)(B)(i), to clarify that this section be inserted at end of subchapter B of chap- ter 12, rather than at end of subchapter B of chapter 11, and did not involve any change in text. Subsec. (a). Pub. L. 97–448, § 104(a)(3)(A), substituted ‘‘For purposes of this chapter and chapter 11, any dis- position’’ for ‘‘Any disposition’’ and ‘‘treated as a transfer of all interests in such property other than the qualifying income interest’’ for ‘‘treated as a transfer of such property’’. Subsec. (c). Pub. L. 97–448, § 104(a)(7), added subsec. (c). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97–448 effective, except as oth- erwise provided, as if it had been included in the provi- sion of the Economic Recovery Tax Act of 1981, Pub. L. 97–34, to which such amendment relates, see section 109 of Pub. L. 97–448, set out as a note under section 1 of this title. EFFECTIVE DATE Section applicable to gifts made after Dec. 31, 1981, see section 403(e)(2) of Pub. L. 97–34, set out as an Effec- tive Date of 1981 Amendment note under section 2056 of this title. Subchapter C—Deductions Sec. [2521. Repealed.] 2522. Charitable and similar gifts. 2523. Gift to spouse. 2524. Extent of deductions. Editorial Notes AMENDMENTS 1976—Pub. L. 94–455, title XX, § 2001(c)(2)(B)(ii), Oct. 4, 1976, 90 Stat. 1853, struck out item 2521 ‘‘Specific ex- emption’’. [§ 2521. Repealed. Pub. L. 94–455, title XX, § 2001(b)(3), Oct. 4, 1976, 90 Stat. 1849] Section, act Aug. 16, 1954, ch. 736, 68A Stat. 410, al- lowed a deduction, in the case of a citizen or resident, an exemption of $30,000, less amounts claimed and al- lowed for calendar year 1932 and calendar years inter- vening between that year and year for which tax is being computed. § 2522. Charitable and similar gifts (a) Citizens or residents In computing taxable gifts for the calendar year, there shall be allowed as a deduction in the case of a citizen or resident the amount of all gifts made during such year to or for the use of— (1) the United States, any State, or any po- litical subdivision thereof, or the District of Columbia, for exclusively public purposes; (2) a corporation, or trust, or community chest, fund, or foundation, organized and oper- ated exclusively for religious, charitable, sci- entific, literary, or educational purposes, or to foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic fa- cilities or equipment), including the encour- agement of art and the prevention of cruelty to children or animals, no part of the net earn- ings of which inures to the benefit of any pri- vate shareholder or individual, which is not disqualified for tax exemption under section 501(c)(3) by reason of attempting to influence legislation, and which does not participate in, or intervene in (including the publishing or distributing of statements), any political cam- paign on behalf of (or in opposition to) any candidate for public office; (3) a fraternal society, order, or association, operating under the lodge system, but only if such gifts are to be used exclusively for reli- gious, charitable, scientific, literary, or edu- cational purposes, including the encourage- ment of art and the prevention of cruelty to children or animals; (4) posts or organizations of war veterans, or auxiliary units or societies of any such posts or organizations, if such posts, organizations, units, or societies are organized in the United States or any of its possessions, and if no part of their net earnings insures to the benefit of any private shareholder or individual. Rules similar to the rules of section 501(j) shall apply for purposes of paragraph (2). (b) Nonresidents In the case of a nonresident not a citizen of the United States, there shall be allowed as a deduction the amount of all gifts made during such year to or for the use of— (1) the United States, any State, or any po- litical subdivision thereof, or the District of Columbia, for exclusively public purposes; (2) a domestic corporation organized and op- erated exclusively for religious, charitable, scientific, literary, or educational purposes, including the encouragement of art and the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or indi- vidual, which is not disqualified for tax ex- emption under section 501(c)(3) by reason of attempting to influence legislation, and which does not participate in, or intervene in (in- cluding the publishing or distributing of state-