Internal Revenue Code:Sec. 2511. Transfers in general
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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 B - Transfers
Statute
Sec. 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 otherwise, whether the gift is direct or indirect, and
whether the property is real or personal, tangible or intangible;
but in the case of a nonresident not a citizen of the United
States, shall apply to a transfer only if the property is situated
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 corporation, and
(2) debt obligations of -
(A) a United States person, or
(B) the United States, a State or any political 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.
(c) Treatment of certain transfers in trust
Notwithstanding any other provision of this section and except as
provided in regulations, 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.
Sources
(Aug. 16, 1954, ch. 736, 68A Stat. 406; Pub. L. 89-809, title I,
Sec. 109(b), Nov. 13, 1966, 80 Stat. 1575; Pub. L. 107-16, title V,
Sec. 511(e), June 7, 2001, 115 Stat. 71.)
Amendment of Section
AMENDMENT OF SECTION
2002 - Subsec. (c). Pub. L. 107-147. sec 411(g), amended
Section 2511(c) is amended by striking ``taxable gift
under section 2503,'' and inserting ``transfer of property by
gift,''.
Pub. L. 107-16, title V, Sec. 511(e), (f)(3), title IX, Sec.
901, June 7, 2001, 115 Stat. 71, 150, provided that, applicable
to gifts made after Dec. 31, 2009, this section is temporarily
amended by adding at the end the following new subsection:
(c) Treatment of certain transfers in trust
Notwithstanding any other provision of this section and except as
provided in regulations, a transfer in trust shall be treated as a
taxable gift under section 2503, 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.
See Effective and Termination Dates of 2001 Amendment note
below.
Miscellaneous
AMENDMENTS
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.
EFFECTIVE AND TERMINATION DATES 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.
Amendment by Pub. L. 107-16 inapplicable to estates of decedents
dying, gifts made, or generation skipping transfers, after Dec. 31,
2010, and the Internal Revenue Code of 1986 to be applied and
administered to such estates, gifts, and transfers as if such
amendment had never been enacted, see section 901 of Pub. L.
107-16, set out as a note under section 1 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.
References
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 2101, 2501 of this title.
