Internal Revenue Code:Sec. 2502. Rate of tax
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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. 2502. Rate of tax
(a) Computation of tax
The tax imposed by section 2501 for each calendar year shall be
an amount equal to the excess of -
(1) a tentative tax, computed under section 2001(c), on the
aggregate sum of the taxable gifts for such calendar year and for
each of the preceding calendar periods, over
(2) a tentative tax, computed under such section, on the
aggregate sum of the taxable gifts for each of the preceding
calendar periods.
(b) Preceding calendar period
Whenever used in this title in connection with the gift tax
imposed by this chapter, the term ''preceding calendar period''
means -
(1) calendar years 1932 and 1970 and all calendar years
intervening between calendar year 1932 and calendar year 1970,
(2) the first calendar quarter of calendar year 1971 and all
calendar quarters intervening between such calendar quarter and
the first calendar quarter of calendar year 1982, and
(3) all calendar years after 1981 and before the calendar year
for which the tax is being computed.
For purposes of paragraph (1), the term ''calendar year 1932''
includes only that portion of such year after June 6, 1932.
(c) Tax to be paid by donor
The tax imposed by section 2501 shall be paid by the donor.
Sources
(Aug. 16, 1954, ch. 736, 68A Stat. 403; Pub. L. 91-614, title I,
Sec. 102(a)(2), Dec. 31, 1970, 84 Stat. 1839; Pub. L. 94-455, title
XX, Sec. 2001(b)(1), Oct. 4, 1976, 90 Stat. 1849; Pub. L. 97-34,
title IV, Sec. 442(a)(2), Aug. 13, 1981, 95 Stat. 320; Pub. L.
100-203, title X, Sec. 10401(b)(2)(B), Dec. 22, 1987, 101 Stat.
1330-431; Pub. L. 107-16, title V, Sec. 511(d), June 7, 2001, 115
Stat. 70.)
Amendment of Section
AMENDMENT OF SUBSECTION (A)
Pub. L. 107-16, title V, Sec. 511(d), (f)(3), title IX, Sec.
901, June 7, 2001, 115 Stat. 70, 71, 150, provided that,
applicable to gifts made after Dec. 31, 2009, subsection (a) of
this section is temporarily amended to read as follows:
(a) Computation of tax
(1) In general
The tax imposed by section 2501 for each calendar year shall be
an amount equal to the excess of -
(A) a tentative tax, computed under paragraph (2), on the
aggregate sum of the taxable gifts for such calendar year and
for each of the preceding calendar periods, over
(B) a tentative tax, computed under paragraph (2), on the
aggregate sum of the taxable gifts for each of the preceding
calendar periods.
(2) Rate schedule
Miscellaneous
---------------------------------------------------------------------
If the amount with respect to The tentative tax is:
which the tentative tax to be
computed is:
---------------------------------------------------------------------
Not over $10,000 18% of such amount.
Over $10,000 but not over $20,000 $1,800, plus 20% of the excess
over $10,000.
Over $20,000 but not over $40,000 $3,800, plus 22% of the excess
over $20,000.
Over $40,000 but not over $60,000 $8,200, plus 24% of the excess
over $40,000.
Over $60,000 but not over $80,000 $13,000, plus 26% of the excess
over $60,000.
Over $80,000 but not over $18,200, plus 28% of the excess
$100,000 over $80,000.
Over $100,000 but not over $23,800, plus 30% of the excess
$150,000 over $100,000.
Over $150,000 but not over $38,800, plus 32% of the excess
$250,000 over $150,000.
Over $250,000 but not over $70,800, plus 34% of the excess
$500,000 over $250,000.
Over $500,000 $155,800, plus 35% of the excess
over $500,000.
-------------------------------
See Effective and Termination Dates of 2001 Amendment note
below.
AMENDMENTS
1987 - Subsec. (a)(1). Pub. L. 100-203, Sec. 10401(b)(2)(B)(i),
substituted ''under section 2001(c)'' for ''in accordance with the
rate schedule set forth in section 2001(c)''.
Subsec. (a)(2). Pub. L. 100-203, Sec. 10401(b)(2)(B)(ii),
substituted ''under such section'' for ''in accordance with such
rate schedule''.
1981 - Subsec. (a). Pub. L. 97-34 substituted in introductory
text and par. (1) ''calendar year'' for ''calendar quarter'' and in
pars. (1) and (2) ''calendar periods'' for ''calendar years and
calendar quarters''.
Subsec. (b). Pub. L. 97-34 substituted definition of ''preceding
calendar period'' for ''calendar quarter'', the latter including
only the first calendar quarter of the calendar year 1971 and
succeeding calendar quarters (covered in par. (2)), the former
incorporating former subsec. (c)(1) definition of ''preceding
calendar years'' as meaning calendar years 1932 and 1970 and all
calendar years intervening between calendar year 1932 and calendar
year 1970 and ''calendar year 1932'' as including only the portion
of such year after June 6, 1932, and former subsec. (c)(2)
definition of ''preceding calendar quarters'' as meaning the first
calendar quarter of calendar year 1971 and all calendar quarters
intervening between such calendar quarter and the calendar quarter
for which the tax is being computed.
Subsecs. (c), (d). Pub. L. 97-34 redesignated subsec. (d) as (c).
Former subsec. (c), defining ''preceding calendar years'' and
''preceding calendar quarters'', was incorporated in subsec. (b).
1976 - Subsec. (a). Pub. L. 94-455 inserted ''tentative'' after
''(1) a'' and ''(2) a'' and substituted in par. (1) ''section
2001(c)'' for ''this subsection'' after ''set forth in''.
1970 - Subsec. (a). Pub. L. 91-614, Sec. 102(a)(2)(A),
substituted a computation of tax formula based on the current
calendar quarter, preceding calendar quarters, and preceding
calendar years for a formula based entirely on the current and
preceding calendar years.
Subsec. (b). Pub. L. 91-614, Sec. 102(a)(2)(B), substituted
definition of ''calendar quarter'' for definition of ''calendar
year''.
Subsec. (c). Pub. L. 91-614, Sec. 102(a)(2)(B), substituted
definition of ''preceding calendar years and quarters'' for
definition of ''preceding calendar years''.
EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
Pub. L. 107-16, title V, Sec. 511(f)(3), June 7, 2001, 115 Stat.
71, provided that: ''The amendments made by subsections (d) and (e)
(amending this section and section 2511 of this title) shall apply
to gifts made after December 31, 2009.''
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 1987 AMENDMENT
Amendment by Pub. L. 100-203 applicable in the case of decedents
dying, and gifts made, after Dec. 31, 1987, see section 10401(c) of
Pub. L. 100-203, 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 1976 AMENDMENT
Section 2001(d)(2) of Pub. L. 94-455 provided that: ''The
amendments made by subsections (b) and (c)(2) (enacting section
2505 of this title, amending this section and section 2504 of this
title, and repealing section 2521 of this title) shall apply to
gifts made after December 31, 1976.''
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, 2501, 2504, 2505 of
this title.
