Final rules 1
(a) Taxable transfers
Amended 1960, 1966
- 1966 Pub. L. 89-809 Pub. L. 89–809 redesignated existing provisions as par. (1), struck out “, except transfers of intangible property by a nonresident not a citizen of the United States and who was not engaged in business in the United States during such calendar year” after “resident or nonresident”, and added pars. (2) to (4).
- 1960 Pub. L. 86-779 Pub. L. 86–779, § 4(d)(2), struck out “who is” before “not a citizen”.
Cited by 2
(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.
Amended 1970, 1976, 1981
- 1981 Pub. L. 97-34 Pub. L. 97–34 substituted “calendar year” for “calendar quarter” wherever appearing.
- 1976 Pub. L. 94-455 Pub. L. 94–455 inserted “for each calendar quarter” after “hereby imposed” and struck out “For the first calendar quarter of calendar year 1971 and each calendar quarter thereafter” after “General rule-”.
- 1970 Pub. L. 91-614 Pub. L. 91–614, § 102(a)(1)(A), substituted “For the first calendar quarter of the calendar year 1971 and each calendar quarter thereafter” for “For the calendar year 1955 and each calendar year thereafter” and “during such calendar quarter” for “during such calendar year”.
Cases: Dickman v. Commissioner, 465 U.S. 330 (1984); Jewett v. Commissioner, 455 U.S. 305 (1982); United States v. Irvine, 511 U.S. 224 (1994)
Cited by 4
(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.
Cited by 6
(3) Exception
Amended 1996, 1997, 2004
- 2004 Pub. L. 108-357 Pub. L. 108–357 added pars. (3) and (5), redesignated former par. (5) as (4), and struck out former pars. (3) and (4) which related to exception of certain individuals from taxable transfers and burden of proof.
- 1997 Pub. L. 105-34 Pub. L. 105–34 substituted “donor” for “decedent”.
- 1996 Pub. L. 104-191 Pub. L. 104–191, § 511(e)(2), substituted “Exception” for “Exceptions” in heading and amended text generally. Prior to amendment, text read as follows: “Paragraph (2) shall not apply in the case of a donor who at any time after March 8, 1965, and within the 10-year period ending with the date of transfer lost United States citizenship unless—
“(A) such donor’s loss of United States citizenship resulted from the application of section 301(b), 350, or 355 of the Immigration and Nationality Act, as amended (8 U.S.C. 1401(b), 1482, or 1487), or
“(B) such loss did not have for one of its principal purposes the avoidance of taxes under this subtitle or subtitle A.”
- 1996 Pub. L. 104-191 Pub. L. 104–191, § 511(f)(2)(B), added subpar. (E).
Cited by 5
(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.
Amended 1970, 1976, 1981, 2004
- 2004 Pub. L. 108-357 Pub. L. 108–357 added pars. (3) and (5), redesignated former par. (5) as (4), and struck out former pars. (3) and (4) which related to exception of certain individuals from taxable transfers and burden of proof.
- 1981 Pub. L. 97-34 Pub. L. 97–34 substituted “calendar year” for “calendar quarter” wherever appearing.
- 1976 Pub. L. 94-455 Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
- 1970 Pub. L. 91-614 Pub. L. 91–614, § 102(a)(1)(B), substituted “calendar quarter” for “calendar year”.
(5) Transfers of certain stock
Amended 1975, 2004
- 2004 Pub. L. 108-357 Pub. L. 108–357 added pars. (3) and (5), redesignated former par. (5) as (4), and struck out former pars. (3) and (4) which related to exception of certain individuals from taxable transfers and burden of proof.
- 1975 Pub. L. 93-625 Pub. L. 93–625 added par. (5).
(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—
Cited by 1
(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—
Cited by 1
(i) the donor owned (within the meaning of section 958(a)) at the time of such transfer 10 percent or more of the total combined voting power of all classes of stock entitled to vote of the foreign corporation, and
(ii) such donor owned (within the meaning of section 958(a)), or is considered to have owned (by applying the ownership rules of section 958(b)), at the time of such transfer, more than 50 percent of—
(I) the total combined voting power of all classes of stock entitled to vote of such corporation, or
(II) the total value of the stock of such corporation.
(C) U.S.-asset value For purposes of subparagraph (A), the U.S.-asset value of stock shall be the amount which bears the same ratio to the fair market value of such stock at the time of transfer as—
Cited by 1
(i) the fair market value (at such time) of the assets owned by such foreign corporation and situated in the United States, bears to
(ii) the total fair market value (at such time) of all assets owned by such foreign corporation.
(6) Transfers to certain exempt organizations Paragraph (1) shall not apply to the transfer of money or other property to an organization described in paragraph (4), (5), or (6) of section 501(c) and exempt from tax under section 501(a), for the use of such organization.
Amended 2015
- 2015 Pub. L. 114-113 Pub. L. 114–113 added par. (6).
(b) Certain residents of possessions considered citizens of the United States A donor who is a citizen of the United States and a resident of a possession thereof shall, for purposes of the tax imposed by this chapter, be considered a “citizen” of the United States within the meaning of that term wherever used in this title unless he acquired his United States citizenship solely by reason of (1) his being a citizen of such possession of the United States, or (2) his birth or residence within such possession of the United States.
Amended 1958
- 1958 Pub. L. 85-866 Pub. L. 85–866, § 102(b), added subsec. (b) and redesignated former subsec. (b) as (c).
Cited by 1
(c) Certain residents of possessions considered nonresidents not citizens of the United States A donor who is a citizen of the United States and a resident of a possession thereof shall, for purposes of the tax imposed by this chapter, be considered a “nonresident not a citizen of the United States” within the meaning of that term wherever used in this title, but only if such donor acquired his United States citizenship solely by reason of (1) his being a citizen of such possession of the United States, or (2) his birth or residence within such possession of the United States.
Amended 1958, 1960
- 1960 Pub. L. 86-779 Pub. L. 86–779, § 4(d)(1), added subsec. (c) and redesignated former subsec. (c) as (d).
- 1958 Pub. L. 85-866 Pub. L. 85–866, § 102(b), redesignated former subsec. (b) as (c) and Pub. L. 85–866, § 43(b), made the heading read in the plural, designated existing provisions as par. (2) and added par. (1).
Cited by 1
(d) Cross references
Amended 1960, 1988, 1990
- 1990 Pub. L. 101-508 Pub. L. 101–508 struck out par. (3) which read as follows: “For treatment of certain transfers related to estate tax valuation freezes as gifts to which this chapter applies, see section 2036(c)(4).”
- 1988 Pub. L. 100-647 Pub. L. 100–647 added par. (3).
- 1960 Pub. L. 86-779 Pub. L. 86–779, § 4(d)(1), added subsec. (c) and redesignated former subsec. (c) as (d).
(1) For increase in basis of property acquired by gift for gift tax paid, see section 1015(d).
(2) For exclusion of transfers of property outside the United States by a nonresident who is not a citizen of the United States, see section 2511(a).