26 U.S.
Code § 2503 - Taxable gifts
(a) General definition
The term
“taxable gifts” means the total amount of gifts made during the calendar year,
less the deductions provided in subchapter C (section 2522
and following).
(b) Exclusions from gifts
(1) In general
In the case
of gifts (other than gifts of future interests in property) made to any person
by the donor during the calendar year, the first $10,000 of such gifts to such
person shall not, for purposes of subsection (a), be included in the total
amount of gifts made during such year. Where there has been a transfer to any
person of a present interest in property, the possibility that such interest
may be diminished by the exercise of a power shall be disregarded in applying
this subsection, if no part of such interest will at any time pass to any other
person.
(2) Inflation adjustment
In the case
of gifts made in a calendar year after 1998, the $10,000 amount contained in
paragraph (1) shall be increased by an amount equal to—
(A) $10,000, multiplied by
(B) the cost-of-living adjustment
determined under section 1 (f)(3) for such calendar year by substituting
“calendar year 1997” for “calendar year 1992” in subparagraph (B) thereof.
If any
amount as adjusted under the preceding sentence is not a multiple of $1,000,
such amount shall be rounded to the next lowest multiple of $1,000.
(c) Transfer for the benefit of minor
No part of
a gift to an individual who has not attained the age of 21 years on the date of
such transfer shall be considered a gift of a future interest in property for
purposes of subsection (b) if the property and the income therefrom—
(1) may be expended by, or for the benefit
of, the donee before his attaining the age of 21 years, and
(2) will to the extent not so expended—
(A) pass to the donee on his attaining the
age of 21 years, and
(B) in the event the donee dies before
attaining the age of 21 years, be payable to the estate of the donee or as he
may appoint under a general power of appointment as defined in section 2514
(c).
[(d) Repealed. Pub. L. 97–34, title III,
§ 311(h)(5),Aug. 13, 1981, 95 Stat. 282]
(e) Exclusion for certain transfers for
educational expenses or medical expenses
(1) In general
Any
qualified transfer shall not be treated as a transfer of property by gift for
purposes of this chapter.
(2) Qualified transfer
For
purposes of this subsection, the term “qualified transfer” means any amount
paid on behalf of an individual—
(A) as tuition to an educational
organization described in section 170
(b)(1)(A)(ii) for the education or training of
such individual, or
(B) to any person who provides medical care
(as defined in section 213 (d)) with respect to such individual as
payment for such medical care.
(f) Waiver of certain pension rights
If any
individual waives, before the death of a participant, any survivor benefit, or
right to such benefit, under section 401
(a)(11) or 417,
such waiver shall not be treated as a transfer of property by gift for purposes
of this chapter.
(g) Treatment of certain loans of
artworks
(1) In general
For
purposes of this subtitle, any loan of a qualified work of art shall not be
treated as a transfer (and the value of such qualified work of art shall be
determined as if such loan had not been made) if—
(A) such loan is to an organization
described in section 501 (c)(3) and exempt from tax under section 501
(c) (other than a private foundation), and
(B) the use of such work by such
organization is related to the purpose or function constituting the basis for
its exemption under section 501.
(2) Definitions
For
purposes of this section—
(A) Qualified work of art
The term
“qualified work of art” means any archaeological, historic, or creative
tangible personal property.
(B) Private foundation
The term
“private foundation” has the meaning given such term by section 509,
except that such term shall not include any private operating foundation (as
defined in section 4942 (j)(3)).
