§ 2503. Taxable gifts
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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). |
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(b) |
Exclusions from gifts |
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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. |
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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 - |
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(A) |
$10,000, multiplied by |
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(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. |
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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. |
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(c) |
Transfer for the benefit of minor |
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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 - |
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(1) |
may be expended by, or for the benefit of, the donee before his attaining the age of 21 years, and |
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(2) |
will to the extent not so expended - |
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(A) |
pass to the donee on his attaining the age of 21 years, and |
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(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). |
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(d) |
[Repealed. Pub. L. 97-34, title III, Section 311(h)(5), Aug. 13, 1981, 95 Stat. 282] |
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(e) |
Exclusion for certain transfers for educational expenses or medical expenses |
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Any qualified transfer shall not be treated as a transfer of property by gift for purposes of this chapter. |
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For purposes of this subsection, the term "qualified transfer" means any amount paid on behalf of an individual - |
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(A) |
as tuition to an educational organization described in section 170(b)(1)(A)(ii) for the education or training of such individual, or |
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(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. |
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(f) |
Waiver of certain pension rights |
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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. |
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(g) |
Treatment of certain loans of artworks |
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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 - |
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(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 |
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(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. |
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For purposes of this section - |
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(A) |
Qualified work of art |
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The term "qualified work of art" means any archaeological, historic, or creative tangible personal property. |
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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)). |
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