Internal Revenue Code:Sec. 2505. Unified credit against gift tax

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

Jump to: navigation, search

Contents


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. 2505. Unified credit against gift tax
 
    (a) General rule
      In the case of a citizen or resident of the United States, there
    shall be allowed as a credit against the tax imposed by section
    2501 for each calendar year an amount equal to -
        (1) the applicable credit amount in effect under section
      2010(c) for such calendar year (determined as if the applicable
      exclusion amount were $1,000,000), reduced by
        (2) the sum of the amounts allowable as a credit to the
      individual under this section for all preceding calendar periods.
    (b) Adjustment to credit for certain gifts made before 1977
      The amount allowable under subsection (a) shall be reduced by an
    amount equal to 20 percent of the aggregate amount allowed as a
    specific exemption under section 2521 (as in effect before its
    repeal by the Tax Reform Act of 1976) with respect to gifts made by
    the individual after September 8, 1976.
    (c) Limitation based on amount of tax
      The amount of the credit allowed under subsection (a) for any
    calendar year shall not exceed the amount of the tax imposed by
    section 2501 for such calendar year.
 

Sources

    (Added Pub. L. 94-455, title XX, Sec. 2001(b)(2), Oct. 4, 1976, 90
    Stat. 1849; amended Pub. L. 97-34, title IV, Sec. 401(b),
    442(a)(5), Aug. 13, 1981, 95 Stat. 299, 321; Pub. L. 101-508, title
    XI, Sec. 11801(a)(40), (c)(19)(B), Nov. 5, 1990, 104 Stat.
    1388-521, 1388-528; Pub. L. 105-34, title V, Sec. 501(a)(2), Aug.
    5, 1997, 111 Stat. 845; Pub. L. 107-16, title V, Sec. 521(b), June
    7, 2001, 115 Stat. 71.)
 

Amendment of Section

                            AMENDMENT OF SECTION
        For termination of amendment by section 901 of Pub. L. 107-16,
      see Effective and Termination Dates of 2001 Amendment note below.
        Pub. L. 107-16, title V, Sec. 521(b)(2), (e)(2), title IX, Sec.
      901, June 7, 2001, 115 Stat. 71, 72, 150, provided that,
      applicable to gifts made after Dec. 31, 2009, subsection (a)(1)
      of this section is temporarily amended to read as follows:
        ''(1) the amount of the tentative tax which would be determined
      under the rate schedule set forth in section 2502(a)(2) if the
      amount with respect to which such tentative tax is to be computed
      were $1,000,000, reduced by''.
 

References in Text

                             REFERENCES IN TEXT
      The Tax Reform Act of 1976, referred to in subsec. (b), 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
      2001 - Subsec. (a)(1). Pub. L. 107-16, Sec. 521(b)(1), 901,
    temporarily inserted ''(determined as if the applicable exclusion
    amount were $1,000,000)'' after ''calendar year''.  See Effective
    and Termination Dates of 2001 Amendment note below.
      1997 - Subsec. (a)(1). Pub. L. 105-34 substituted ''the
    applicable credit amount in effect under section 2010(c) for such
    calendar year'' for ''$192,800''.
      1990 - Subsecs. (b) to (d). Pub. L. 101-508 redesignated subsecs.
    (c) and (d) as subsecs. (b) and (c), respectively, and struck out
    former subsec. (b) which provided for a phase-in of the unified
    credit against gift tax.
      1981 - Subsec. (a). Pub. L. 97-34, Sec. 442(a)(5)(A), substituted
    in provision preceding par. (1) ''year'' for ''quarter'', and
    ''periods'' for ''quarters'' in par. (2).
      Subsec. (a)(1). Pub. L. 97-34, Sec. 401(b)(1), substituted
    ''$192,800'' for ''$47,000''.
      Subsec. (b). Pub. L. 97-34, Sec. 401(b)(2), struck out from
    heading ''$47,000'' before ''credit'', substituted subsec. (a)(1)
    substitutions for ''$192,800'' of amounts of ''$62,800'',
    ''$79,300'', ''$96,300'', ''$121,800'', and ''$155,800'' in the
    case of gifts made in 1982, 1983, 1984, 1985, and 1986,
    respectively, for subsec. (a)(1) substitutions for ''$47,000'' of
    amounts of ''$6,000'', ''$30,000'', ''$34,000'', ''$38,000'', and
    ''$42,500'' in the case of gifts made after Dec. 31, 1976, and
    before July 1, 1977, after June 30, 1977, and before Jan. 1, 1978;
    after Dec. 31, 1977, and before Jan. 1, 1979, after Dec. 31, 1978,
    and before Jan. 1, 1980, and after Dec. 31, 1979, and before Jan.
    1, 1981, respectively.
      Subsec. (d). Pub. L. 97-34, Sec. 442(a)(5)(B), substituted
    ''year'' for ''quarter'' in two places.
             EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
      Amendment by section 521(b)(1) of Pub. L. 107-16 applicable to
    estates of decedents dying, and gifts made, after Dec. 31, 2001,
    and amendment by section 521(b)(2) of Pub. L. 107-16 applicable to
    gifts made after Dec. 31, 2009, see section 521(e)(1), (2) of Pub.
    L. 107-16, set out as a note under section 2010 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 1997 AMENDMENT
      Amendment by Pub. L. 105-34 applicable to estates of decedents
    dying, and gifts made, after Dec. 31, 1997, see section 501(f) of
    Pub. L. 105-34, set out as a note under section 2001 of this title.
                      EFFECTIVE DATE OF 1981 AMENDMENT
      Section 401(c)(2) of Pub. L. 97-34 provided that: ''The
    amendments made by subsection (b) (amending this section) shall
    apply to gifts made after such date (Dec. 31, 1981).''
      Amendment by section 442(a)(5) of 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.
                             SAVINGS PROVISION
      For provisions that nothing in amendment by Pub. L. 101-508 be
    construed to affect treatment of certain transactions occurring,
    property acquired, or items of income, loss, deduction, or credit
    taken into account prior to Nov. 5, 1990, for purposes of
    determining liability for tax for periods ending after Nov. 5,
    1990, see section 11821(b) of Pub. L. 101-508, set out as a note
    under section 29 of this title.
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 2056A, 2102 of this
    title.
 

Personal tools