Internal Revenue Code:Sec. 2504. Taxable gifts for preceding calendar periods

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Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle B - Estate and Gift Taxes
       CHAPTER 12 - GIFT TAX
        Subchapter A - Determination of Tax Liability
      

Statute

    Sec. 2504. Taxable gifts for preceding calendar periods
 
    (a) In general
      In computing taxable gifts for preceding calendar periods for
    purposes of computing the tax for any calendar year -
        (1) 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,
        (2) there shall be allowed such deductions as were provided for
      under such laws, and
        (3) 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.
    (b) Exclusions from gifts for preceding calendar periods
      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.
    (c) Valuation of gifts
      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 -
        (1) the transfer of property by gift made during a preceding
      calendar period (as defined in section 2502(b)); or
        (2) 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.
    (d) Net gifts
      The term ''net gifts'' as used in the corresponding provisions of
    prior laws shall be read as ''taxable gifts'' for purposes of this
    chapter.
 

Sources

    (Aug. 16, 1954, ch. 736, 68A Stat. 405; Pub. L. 91-614, title I,
    Sec. 102(a)(4)(A), Dec. 31, 1970, 84 Stat. 1839; Pub. L. 94-455,
    title XX, Sec. 2001(c)(2)(A), Oct. 4, 1976, 90 Stat. 1853; Pub. L.
    97-34, title IV, Sec. 442(a)(4)(A)-(D), Aug. 13, 1981, 95 Stat.
    321; Pub. L. 105-34, title V, Sec. 506(d), Aug. 5, 1997, 111 Stat.
    856; Pub. L. 105-206, title VI, Sec. 6007(e)(2)(B)((C)), July 22,
    1998, 112 Stat. 810.)
 

References in Text

                             REFERENCES IN TEXT
      The Tax Reform Act of 1976, referred to in subsec. (a)(3), is
    Pub. L. 94-455, Oct. 4, 1976, 90 Stat. 1520, as amended.  Section
    2521 of this title was repealed by section 2001(b)(3) of Pub. L.
    94-455. For complete classification of this Act to the Code, see
    Tables.
 

Miscellaneous

                                 AMENDMENTS
      1998 - Subsec. (c). Pub. L. 105-206 substituted ''gifts'' for
    ''certain gifts for preceding calendar periods'' in heading and
    amended text generally.  Prior to amendment, text read as follows:
    ''If the time has expired within which a tax may be assessed under
    this chapter 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), the value of such gift made
    in such preceding calendar period shall, for purposes of computing
    the tax under this chapter for any calendar year, be the value of
    such gift which was used in computing the tax for the last
    preceding calendar period for which a tax under this chapter or
    under corresponding provisions of prior laws was assessed or
    paid.''
      1997 - Subsec. (c). Pub. L. 105-34 struck out '', and if a tax
    under this chapter or under corresponding provisions of prior laws
    has been assessed or paid for such preceding calendar period''
    after ''as defined in section 2502(b)''.
      1981 - Pub. L. 97-34, Sec. 442(a)(4)(D), substituted ''calendar
    periods'' for ''years and quarters'' in section catchline.
      Subsec. (a). Pub. L. 97-34, Sec. 442(a)(4)(A), substituted in
    introductory text ''preceding calendar periods'' and ''calendar
    year'' for ''preceding calendar years or calendar quarters'' and
    ''calendar quarter'', incorporated existing text in provisions
    designated pars. (1) to (3), and substituted in par. (1) ''calendar
    period'' for ''years or calendar quarters'' and in par. (3)
    ''preceding calendar periods'' and ''calendar year'' for ''calendar
    years or calendar quarters'' and ''calendar quarter''.
      Subsec. (b). Pub. L. 97-34, Sec. 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 preceding calendar periods'' for ''such
    years and calendar quarters''.
      Subsec. (c). Pub. L. 97-34, Sec. 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 quarter'', 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 calendar 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 calendar years or calendar quarters for the
    purpose of computing the tax for any calendar year or calendar
    quarter'' for ''the calendar year 1954 and previous calendar years
    for the purpose of computing the tax for the calendar year 1955 or
    any calendar year thereafter''.
      Subsec. (b). Pub. L. 91-614 inserted reference to calendar
    quarters in heading, substituted ''during preceding calendar years
    and calendar quarters,'' for ''during the calendar year 1954 and
    preceding calendar years,'' made reference to the amount excluded
    by gift tax laws applicable to the calendar quarters as well as
    years in which the gifts were made, and substituted ''during such
    years and calendar quarters'' for ''during such year''.
      Subsec. (c). Pub. L. 91-614 inserted reference to calendar
    quarters in heading, inserted ''or calendar quarter'' after
    ''calendar year'' in four places, and substituted ''for any
    calendar quarter,'' for ''for the calendar year 1955 and subsequent
    calendar years,''.
      Subsec. (d). Pub. L. 91-614 struck out ''For years before the
    calendar year 1955'' from explanation of term ''net gifts'' as used
    in corresponding provisions of prior laws.
                      EFFECTIVE DATE OF 1998 AMENDMENT
      Amendment by Pub. L. 105-206 effective, except as otherwise
    provided, as if included in the provisions of the Taxpayer Relief
    Act of 1997, Pub. L. 105-34, to which such amendment relates, see
    section 6024 of Pub. L. 105-206, set out as a note under section 1
    of this title.
                      EFFECTIVE DATE OF 1997 AMENDMENT
      Amendment by Pub. L. 105-34 applicable to gifts made after Aug.
    5, 1997, see section 506(e)(1) of Pub. L. 105-34, as amended, set
    out as a note under section 2001 of this title.
                      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.