26 U.S.C. § 2504 — Taxable gifts for preceding calendar periods
submitted 72 years ago by ch. 736 to r/title-26-INTERNAL-REVENUE-CODE · 306 words · no verdicts yet
This section explains how to compute taxable gifts for earlier periods, using the laws and deductions that applied then and a final-value rule for closed assessment periods.
(a) For computing taxable gifts for earlier periods: (1) treat transfers as gifts if the laws applying when made treated them as gifts; (2) allow the deductions those laws provided; and (3) use any specific exemption allowed under section 2521 before its repeal by the Tax Reform Act of 1976 for earlier periods ending before January 1, 1977.
(b) Do not include amounts excluded by the gift-tax laws applying when gifts were made.
(c) If the section 6501 assessment period has expired for (1) a gift transfer of property made during an earlier period as defined in section 2502(b), or (2) an increase in taxable gifts required under section 2701(d), use the value finally determined under section 2001(f)(2).
(d) “Net gifts” in corresponding earlier laws means “taxable gifts” for this chapter.
In computing taxable gifts for preceding calendar periods for purposes of computing the tax for any calendar year—
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,
there shall be allowed such deductions as were provided for under such laws, and
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.
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.
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—
the transfer of property by gift made during a preceding calendar period* (as defined in section 2502(b)); or
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.
The term “net gifts” as used in the corresponding provisions of prior laws shall be read as “taxable gifts” for purposes of this chapter.
Source credit: (Aug. 16, 1954, ch. 736, 68A Stat. 405; Pub. L. 91–614, title I, § 102(a)(4)(A), Dec. 31, 1970, 84 Stat. 1839; Pub. L. 94–455, title XX, § 2001(c)(2)(A), Oct. 4, 1976, 90 Stat. 1853; Pub. L. 97–34, title IV, § 442(a)(4)(A)–(D), Aug. 13, 1981, 95 Stat. 321; Pub. L. 105–34, title V, § 506(d), Aug. 5, 1997, 111 Stat. 856; Pub. L. 105–206, title VI, § 6007(e)(2)(B)[(C)], July 22, 1998, 112 Stat. 810.)
- 1954Enacted · Act of Aug. 16, 1954, ch. 736
- 1970Amended · Pub. L. 91-614 · 84 Stat. 1839
- 1976Amended · Pub. L. 94-455 · 90 Stat. 1853
- 1981Amended · Pub. L. 97-34 · 95 Stat. 321
- 1997Amended · Pub. L. 105-34 · 111 Stat. 856
- 1998Amended · Pub. L. 105-206 · 112 Stat. 810
A history note hasn’t been published yet. The record shows enactment by ch. 736 on 1954-08-16.
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