26 U.S.C. § 2501 : US Code - Section 2501: Imposition of tax

Search 26 U.S.C. § 2501 : US Code - Section 2501: Imposition of tax

(a) Taxable transfers
(1) General rule
A tax, computed as provided in section 2502, is hereby imposed
for each calendar year on the transfer of property by gift during
such calendar year by any individual resident or nonresident.
(2) Transfers of intangible property
Except as provided in paragraph (3), paragraph (1) shall not
apply to the transfer of intangible property by a nonresident not
a citizen of the United States.
(3) Exception
(A) Certain individuals
Paragraph (2) shall not apply in the case of a donor to whom
section 877(b) applies for the taxable year which includes the
date of the transfer.
(B) Credit for foreign gift taxes
The tax imposed by this section solely by reason of this
paragraph shall be credited with the amount of any gift tax
actually paid to any foreign country in respect of any gift
which is taxable under this section solely by reason of this
paragraph.
(4) Transfers to political organizations
Paragraph (1) shall not apply to the transfer of money or other
property to a political organization (within the meaning of
section 527(e)(1)) for the use of such organization.
(5) Transfers of certain stock
(A) In general
In the case of a transfer of stock in a foreign corporation
described in subparagraph (B) by a donor to whom section 877(b)
applies for the taxable year which includes the date of the
transfer -
(i) section 2511(a) shall be applied without regard to
whether such stock is situated within the United States, and
(ii) the value of such stock for purposes of this chapter
shall be its U.S.-asset value determined under subparagraph
(C).
(B) Foreign corporation described
A foreign corporation is described in this subparagraph with
respect to a donor if -
(i) the donor owned (within the meaning of section 958(a))
at the time of such transfer 10 percent or more of the total
combined voting power of all classes of stock entitled to
vote of the foreign corporation, and
(ii) such donor owned (within the meaning of section
958(a)), or is considered to have owned (by applying the
ownership rules of section 958(b)), at the time of such
transfer, more than 50 percent of -
(I) the total combined voting power of all classes of
stock entitled to vote of such corporation, or
(II) the total value of the stock of such corporation.
(C) U.S.-asset value
For purposes of subparagraph (A), the U.S.-asset value of
stock shall be the amount which bears the same ratio to the
fair market value of such stock at the time of transfer as -
(i) the fair market value (at such time) of the assets
owned by such foreign corporation and situated in the United
States, bears to
(ii) the total fair market value (at such time) of all
assets owned by such foreign corporation.
(b) Certain residents of possessions considered citizens of the
United States
A donor who is a citizen of the United States and a resident of a
possession thereof shall, for purposes of the tax imposed by this
chapter, be considered a "citizen" of the United States within the
meaning of that term wherever used in this title unless he acquired
his United States citizenship solely by reason of (1) his being a
citizen of such possession of the United States, or (2) his birth
or residence within such possession of the United States.
(c) Certain residents of possessions considered nonresidents not
citizens of the United States
A donor who is a citizen of the United States and a resident of a
possession thereof shall, for purposes of the tax imposed by this
chapter, be considered a "nonresident not a citizen of the United
States" within the meaning of that term wherever used in this
title, but only if such donor acquired his United States
citizenship solely by reason of (1) his being a citizen of such
possession of the United States, or (2) his birth or residence
within such possession of the United States.
(d) Cross references
(1) For increase in basis of property acquired by gift for
gift tax paid, see section 1015(d).
(2) For exclusion of transfers of property outside the United
States by a nonresident who is not a citizen of the United
States, see section 2511(a).