Internal Revenue Code:Sec. 2012. Credit for gift tax

From TaxAlmanac

Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle B - Estate and Gift Taxes
       CHAPTER 11 - ESTATE TAX
        Subchapter A - Estates of Citizens or Residents
         PART II - CREDITS AGAINST TAX
       

Statute

    Sec. 2012. Credit for gift tax
 
    (a) In general
      If a tax on a gift has been paid under chapter 12 (sec. 2501 and
    following), or under corresponding provisions of prior laws, and
    thereafter on the death of the donor any amount in respect of such
    gift is required to be included in the value of the gross estate of
    the decedent for purposes of this chapter, then there shall be
    credited against the tax imposed by section 2001 the amount of the
    tax paid on a gift under chapter 12, or under corresponding
    provisions of prior laws, with respect to so much of the property
    which constituted the gift as is included in the gross estate,
    except that the amount of such credit shall not exceed an amount
    which bears the same ratio to the tax imposed by section 2001
    (after deducting from such tax the credit for State death taxes
    provided by section 2011 and the unified credit provided by section
    2010) as the value (at the time of the gift or at the time of the
    death, whichever is lower) of so much of the property which
    constituted the gift as is included in the gross estate bears to
    the value of the entire gross estate reduced by the aggregate
    amount of the charitable and marital deductions allowed under
    sections 2055, 2056, and 2106(a)(2).
    (b) Valuation reductions
      In applying, with respect to any gift, the ratio stated in
    subsection (a), the value at the time of the gift or at the time of
    the death, referred to in such ratio, shall be reduced -
        (1) by such amount as will properly reflect the amount of such
      gift which was excluded in determining (for purposes of section
      2503(a)), or of corresponding provisions of prior laws, the total
      amount of gifts made during the calendar quarter (or calendar
      year if the gift was made before January 1, 1971) in which the
      gift was made;
        (2) if a deduction with respect to such gift is allowed under
      section 2056(a) (relating to marital deduction), then by the
      amount of such value, reduced as provided in paragraph (1); and
        (3) if a deduction with respect to such gift is allowed under
      sections 2055 or 2106(a)(2) (relating to charitable deduction),
      then by the amount of such value, reduced as provided in
      paragraph (1) of this subsection.
    (c) Where gift considered made one-half by spouse
      Where the decedent was the donor of the gift but, under the
    provisions of section 2513, or corresponding provisions of prior
    laws, the gift was considered as made one-half by his spouse -
        (1) the term ''the amount of the tax paid on a gift under
      chapter 12'', as used in subsection (a), includes the amounts
      paid with respect to each half of such gift, the amount paid with
      respect to each being computed in the manner provided in
      subsection (d); and
        (2) in applying, with respect to such gift, the ratio stated in
      subsection (a), the value at the time of the gift or at the time
      of the death, referred to in such ratio, includes such value with
      respect to each half of such gift, each such value being reduced
      as provided in paragraph (1) of subsection (b).
    (d) Computation of amount of gift tax paid
      (1) Amount of tax
        For purposes of subsection (a), the amount of tax paid on a
      gift under chapter 12, or under corresponding provisions of prior
      laws, with respect to any gift shall be an amount which bears the
      same ratio to the total tax paid for the calendar quarter (or
      calendar year if the gift was made before January 1, 1971) in
      which the gift was made as the amount of such gift bears to the
      total amount of taxable gifts (computed without deduction of the
      specific exemption) for such quarter or year.
      (2) Amount of gift
        For purposes of paragraph (1), the ''amount of such gift''
      shall be the amount included with respect to such gift in
      determining (for the purposes of section 2503(a), or of
      corresponding provisions of prior laws) the total amount of gifts
      made during such quarter or year, reduced by the amount of any
      deduction allowed with respect to such gift under section 2522,
      or under corresponding provisions of prior laws (relating to
      charitable deduction), or under section 2523 (relating to marital
      deduction).
    (e) Section inapplicable to gifts made after December 31, 1976
      No credit shall be allowed under this section with respect to the
    amount of any tax paid under chapter 12 on any gift made after
    December 31, 1976.
 

Sources

    (Aug. 16, 1954, ch. 736, 68A Stat. 375; Pub. L. 91-614, title I,
    Sec. 102(d)(2), Dec. 31, 1970, 84 Stat. 1841; Pub. L. 94-455, title
    XIX, Sec. 1902(a)(1), title XX, Sec. 2001(a)(3), (c)(1)(B), Oct. 4,
    1976, 90 Stat. 1804, 1848, 1850; Pub. L. 97-34, title IV, Sec.
    403(a)(2)(A), Aug. 13, 1981, 95 Stat. 301; Pub. L. 107-16, title V,
    Sec. 532(c)(1), June 7, 2001, 115 Stat. 73.)
 

Amendment of Section

                        AMENDMENT OF SUBSECTION (A)
        Pub. L. 107-16, title V, Sec. 532(c)(1), (d), title IX, Sec.
      901, June 7, 2001, 115 Stat. 73, 75, 150, provided that,
      applicable to estates of decedents dying, and generation-skipping
      transfers, after Dec. 31, 2004, subsection (a) of this section is
      temporarily amended by striking out ''the credit for State death
      taxes provided by section 2011 and'' before ''the unified
      credit''.  See Effective and Termination Dates of 2001 Amendment
      note below.
 

Miscellaneous

                                 AMENDMENTS
      1981 - Subsec. (b)(2). Pub. L. 97-34 substituted ''the amount of
    such value, reduced as provided in paragraph (1)'' for ''an amount
    which bears the same ratio to such value (reduced as provided in
    paragraph (1) of this subsection) as the aggregate amount of the
    marital deductions allowed under section 2056(a) bears to the
    aggregate amount of such marital deductions computed without regard
    to subsection (c) thereof''.
      1976 - Subsec. (a). Pub. L. 94-455, Sec. 2001(c)(1)(B),
    substituted ''provided by section 2011 and the unified credit
    provided by section 2010'' for ''provided by section 2011''.
      Subsec. (b). Pub. L. 94-455, Sec. 1902(a)(1)(A), added heading
    and substituted a comma for a dash after ''deduction)'' in pars.
    (2) and (3).
      Subsec. (c). Pub. L. 94-455, Sec. 1902(a)(1)(B), added heading.
      Subsec. (d). Pub. L. 94-455, Sec. 1902(a)(1)(C), (D), added
    headings for subsec. (d) and for pars. (1) and (2).
      Subsec. (e). Pub. L. 94-455, Sec. 2001(a)(3), added subsec. (e).
      1970 - Subsec. (b)(1). Pub. L. 91-614, Sec. 102(d)(2)(A),
    substituted ''the calendar quarter (or calendar year if the gift
    was made before January 1, 1971)'' for ''the year''.
      Subsec. (d). Pub. L. 91-614, Sec. 102(d)(2)(B), substituted
    ''such quarter or year'' for ''such year'' in two places.
      Subsec. (d)(1). Pub. L. 91-614, Sec. 102(d)(2)(A), substituted
    ''the calendar quarter (or calendar year if the gift was made
    before January 1, 1971)'' for ''the year''.
             EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
      Amendment by Pub. L. 107-16 applicable to estates of decedents
    dying, and generation-skipping transfers, after Dec. 31, 2004, see
    section 532(d) of Pub. L. 107-16, set out as a note under section
    2011 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 1981 AMENDMENT
      Amendment by Pub. L. 97-34 applicable to estates of decedents
    dying after Dec. 31, 1981, but inapplicable under certain
    conditions under will executed before date which is 30 days after
    Aug. 13, 1981, or under trust created by such date, see section
    403(e) of Pub. L. 97-34, set out as a note under section 2056 of
    this title.
                      EFFECTIVE DATE OF 1976 AMENDMENT
      Amendment by section 1902(a)(1) of Pub. L. 94-455 applicable to
    estates of decedents dying after Oct. 4, 1976, see section
    1902(c)(1) of Pub. L. 94-455, set out as a note under section 2011
    of this title.
      Amendment by section 2001(a)(3), (c)(1)(B) of Pub. L. 94-455
    applicable to estates of decedents dying after Dec. 31, 1976, see
    section 2001(d)(1) of Pub. L. 94-455, set out as a note under
    section 2001 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.
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 2001, 2013, 2014, 2102,
    2107 of this title.