ask the IRS… - Posted by Mr Donald (NORVA)
Posted by Mr Donald (NORVA) on October 24, 1998 at 19:16:25:
Sec. 2501. Imposition of tax
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
Sec. 2502. Rate of tax
Computation of tax
The tax imposed by section 2501 for each calendar year shall be an amount equal to the excess of -
a tentative tax, computed under section 2001© on the aggregate sum of the taxable gifts for such calendar year and for each of the preceding calendar periods, over
a tentative tax, computed under such section, on the aggregate sum of the taxable gifts for each of the preceding calendar periods.
Tax to be paid by donor
The tax imposed by section 2501 shall be paid by the donor.
Sec. 2503. Taxable gifts
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).
Exclusions from gifts
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.