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