tion 2001(d)(1) of Pub. L. 94-455, set out as a note under section 2001 of this title.

§ 2207A. Right of recovery in the case of certain marital deduction property

(a) Recovery with respect to estate tax

(1) In general

If any part of the gross estate consists of property the value of which is includible in the gross estate by reason of section 2044 (relating to certain property for which marital deduction was previously allowed), the decedent's estate shall be entitled to recover from the person receiving the property the amount by which

(A) the total tax under this chapter which has been paid, exceeds

(B) the total tax under this chapter which would have been payable if the value of such property had not been included in the gross estate.

(2) Decedent may otherwise direct by will

Paragraph (1) shall not apply if the decedent otherwise directs by will.

(b) Recovery with respect to gift tax

If for any calendar year tax is paid under chapter 12 with respect to any person by reason of property treated as transferred by such person under section 2519, such person shall be entitled to recover from the person receiving the property the amount by which

(1) the total tax for such year under chapter 12, exceeds

(2) the total tax which would have been payable under such chapter for such year if the value of such property had not been taken into account for purposes of chapter 12. (c) More than one recipient of property

For purposes of this section, if there is more than one person receiving the property, the right of recovery shall be against each such person.

(d) Taxes and interest

In the case of penalties and interest attributable to additional taxes described in subsections (a) and (b), rules similar to subsections (a), (b), and (c) shall apply.

(Added Pub. L. 97-34, title IV, § 403(d)(4)(A), Aug. 13, 1981, 95 Stat. 304.)

EFFECTIVE DATE

ing 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.

(Added Pub. L. 85-866, title I, § 102(a), Sept. 2, 1958, 72 Stat. 1674.)

EFFECTIVE DATE

Section applicable to estates of decedents dying after Sept. 2, 1958, see section 102(d) of Pub. L. 85-866, set out as an Effective Date of 1958 Amendment note under section 2011 of this title.

§ 2209. Certain residents of possessions considered nonresidents not citizens of the United States

A decedent who was a citizen of the United States and a resident of a possession thereof at the time of his death 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 person 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. (Added Pub. L. 86-779, § 4(b)(1), Sept. 14, 1960, 74 Stat. 999.)

Section applicable to the estates of decedents dying after Dec. 31, 1981, see section 403(e) of Pub. L. 97-34, set out as an Effective Date of 1981 Amendment note under section 2056 of this title.

Sec.

2501.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 2519 of this title.

§ 2208. Certain residents of possessions considered citizens of the United States

A decedent who was a citizen of the United States and a resident of a possession thereof at the time of his death shall, for purposes of the tax imposed by this chapter, be considered a "citizen" of the United States within the mean

Taxable gifts for preceding calendar periods. Unified credit against gift tax.

AMENDMENTS

1981-Pub. L. 97-34, title IV, § 442(a)(4)(E), Aug. 13, 1981, 95 Stat. 321, substituted in item 2504 "preceding calendar periods" for "preceding years and quarters". 1976-Pub. L. 94-455, title XX, § 2001(c)(2)(B)(i), Oct. 4, 1976, 90 Stat. 1853, added item 2505.

1970-Pub. L. 91-614, title I. § 102(a)(4)(B), Dec. 31, 1970, 84 Stat. 1840, substituted "Taxable gifts for pre

'Section numbers editorially supplied.

ceding years and quarters" for "Taxable gifts for preceding years" in item 2504.

§ 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) Exceptions

Paragraph (2) shall not apply in the case of a donor who at any time after March 8, 1965, and within the 10-year period ending with the date of transfer lost United States citizenship unless

(A) such donor's loss of United States citizenship resulted from the application of section 301(b), 350, or 355 of the Immigration and Nationality Act, as amended (8 U.S.C. 1401(b), 1482, or 1487), or

(B) such loss did not have for one of its principal purposes the avoidance of taxes under this subtitle or subtitle A.

(4) Burden of proof

If the Secretary establishes that it is reasonable to believe that an individual's loss of United States citizenship would, but for paragraph (3), result in a substantial reduction for the calendar year in the taxes on the transfer of property by gift, the burden of proving that such loss of citizenship did not have for one of its principal purposes the avoidance of taxes under this subtitle or subtitle A shall be on such individual.

(5) 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. (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).

(Aug. 16, 1954, ch. 736, 68A Stat. 403; Sept. 2, 1958, Pub. L. 85-866, title I, §§ 43(b), 102(b), 72 Stat. 1641, 1674; Sept. 14, 1960, Pub. L. 86-779, § 4(d), 74 Stat. 1000; Nov. 13, 1966, Pub. L. 89-809, title I, § 109(a), 80 Stat. 1574; Dec. 31, 1970, Pub. L. 91-614, title I, § 102(a)(1), 84 Stat. 1838; Jan. 3, 1975, Pub. L. 93-625, § 14(a), 88 Stat. 2121; Oct. 4, 1976, Pub. L. 94-455, title XIX, §§ 1902(a)(10), 1906(b)(13)(A), 90 Stat. 1805, 1834; Aug. 13, 1981, Pub. L. 97-34, title IV, § 442(a)(1), 95 Stat. 320.)

REFERENCES IN TEXT

Sections 301(b), 350 and 355 of the Immigration and Nationality Act, as amended (8 U.S.C. 1401(b), 1482, 1487), referred to in subsec. (a)(3)(A), were repealed by Pub. L. 95-432, §§ 1, 2, Oct. 10, 1978, 92 Stat. 1046.

AMENDMENTS

1981-Subsec. (a). Pub. L. 97-34 substituted "calendar year" for "calendar quarter" in par. (1) twice and in par. (4) once.

1976-Subsec. (a)(1). Pub. L. 94-455 added "for each calendar quarter" following "hereby imposed" and struck out "For the first calendar quarter of calendar year 1971 and each calendar quarter thereafter" following "General rule-".

Subsec. (a)(4). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary".

1975-Subsec. (a)(5). Pub. L. 93-625 added par. (5). 1970 Subsec. (a)(1). Pub. L. 91-614, § 102(a)(1)(A), substituted "For the first calendar quarter of the calendar year 1971 and each calendar quarter thereafter" for "For the calendar year 1955 and each calendar year thereafter" and "during such calendar quarter" for "during such calendar year".

Subsec. (a)(4). Pub. L. 91-614, § 102(a)(1)(B), substituted "calendar quarter" for "calendar year".

1966-Subsec. (a). Pub. L. 89-809 redesignated existing provisions as par. (1), struck out from par. (1) as so redesignated", except transfers of intangible property by a nonresident not a citizen of the United States and who was not engaged in business in the United States during such calendar year" following "resident or nonresident", and added pars. (2) to (4).

1960-Subsec. (a). Pub. L. 86-779, § 4(d)(2), deleted "who is" preceding "not a citizen".

Subsecs. (c), (d). Pub. L. 86-779, § 4(d)(1), added subsec. (c). Former subsec. (c) redesignated (d).

1958-Subsec. (b). Pub. L. 85-866, § 102(b), added subsec. (b) and redesignated former subsec. (b) as (c). Subsec. (c). Pub. L. 85-866, § 102(b), redesignated former subsec. (b) as (c) and Pub. L. 85-866, § 43(b), made the heading read in the plural, designated existing provisions as par. (2) and added par. (1).

EFFECTIVE DATE OF 1981 Amendment

Section 442(e) of Pub. L. 97-34 provided that: "The amendments made by this section [amending sections 1015, 2501, 2502, 2503, 2504, 2505, 2512, 2513, 2522, 6019, 6075, and 6212 of this title] shall apply with respect to gifts made after December 31, 1981."

EFFECTIVE DATE OF 1976 Amendment

Section 1902(c)(2) of Pub. L. 94-455, as amended by Pub. L. 95-600, title VII, § 703(j)(12), Nov. 6, 1978, 92 Stat. 2942, provided that: "The amendments made by paragraphs (10), (11), and (12)(D) and (E) of subsection (a) [amending sections 2501, 2522, and 2523 of this title] shall apply with respect to gifts made after December 31, 1976."

EFFECTIVE Date of 1975 AMENDMENT

Section 14(b) of Pub. L. 93-625 provided that: "The amendment made by subsection (a) [enacting subsec. (a)(5) of this section] shall apply to transfers made after May 7, 1974."

EFFECTIVE Date of 1970 AMENDMENT

Section 102(e) of Pub. L. 91-614 provided that: "The amendments made by this section [amending sections 1015, 2012, 2501, 2502, 2503, 2504, 2512, 2513, 2515, 2521, 2522, 2523, 6019, 6075, 6212, 6214, 6324, 6501 and 6512 of this title and enacting provisions set out as a note under this section] shall apply with respect to gifts made after December 31, 1970."

EFFECTIVE DATE OF 1966 AMENDMENT

Section 109(c) of Pub. L. 89-809 provided that: "The amendments made by this section (amending sections 2501 and 2511 of this title] shall apply with respect to the calendar year 1967 and all calendar years thereafter."

EFFECTIVE Date of 1960 AmenDMENT

Section 4(e)(3) of Pub. L. 86-779 provided that: "The amendments made by subsection (d) [amending this section] shall apply with respect to gifts made after the date of the enactment of this Act [Sept. 14, 1960]."

EFFECTIVE Date of 1958 AMENDMENT

Amendment of subsecs. (b) and (c) by Pub. L. 85-866 applicable to gifts made after September 2, 1958, see section 102(d) of Pub. L. 85-866, set out as a note under section 2011 of this title.

ELECTION TO HAVE AMENDMENTS BY TITLE IV OF THE ECONOMIC RECOVERY TAX ACT OF 1981 NOT APPLY Pub. L. 97-448, title I, § 104(d)(3), Jan. 12, 1983, 96 Stat. 2383, provided that:

"(A) In the case of any decedent

"(i) who dies before August 13, 1984, and

"(ii) who made a gift (before August 13, 1981, and during the 3-year period ending on the date of the decedent's death) on which tax imposed by chapter 12 of the Internal Revenue Code of 1954 has been paid before April 16, 1982,

such decedent's executor may make an election to have subtitle B of such Code (relating to estate and gift taxes) applied with respect to such decedent without regard to any of the amendments made by title IV of the Economic Recovery Tax Act of 1981 [Pub. L. 97-34, title IV].

"(B) An election under subparagraph (A) shall be made at such time and in such manner as the Secretary of the Treasury or his delegate shall prescribe. "(C) An election under subparagraph (A), once made, shall be irrevocable."

CROSS REFERENCES

Calendar quarter defined, see section 2502 of this

title.

Gross income as not including gifts, see section 102 of this title.

Taxable gifts defined, see section 2503 of this title. Transfers, see section 2511 et seq. of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 305, 351, 1101, 2502, 2505, 2511, 2523, 2621 of this title.

§ 2502. Rate of tax

(a) Computation of tax

The tax imposed by section 2501 for each calendar year shall be an amount equal to the excess of

(1) a tentative tax, computed in accordance with the rate schedule set forth in section 2001(c), on the aggregate sum of the taxable gifts for such calendar year and for each of the preceding calendar periods, over

(2) a tentative tax, computed in accordance with such rate schedule, on the aggregate sum of the taxable gifts for each of the preceding calendar periods.

(b) Preceding calendar period

Whenever used in this title in connection with the gift tax imposed by this chapter, the term "preceding calendar period" means—

(1) calendar years 1932 and 1970 and all calendar years intervening between calendar year 1932 and calendar year 1970,

(2) the first calendar quarter of calendar year 1971 and all calendar quarters intervening between such calendar quarter and the first calendar quarter of calendar year 1982, and

(3) all calendar years after 1981 and before the calendar year for which the tax is being computed.

For purposes of paragraph (1), the term "calendar year 1932" includes only that portion of such year after June 6, 1932.

(c) Tax to be paid by donor

The tax imposed by section 2501 shall be paid by the donor.

(Aug. 16, 1954, ch. 736, 68A Stat. 403; Dec. 31, 1970, Pub. L. 91-614, title I, § 102(a)(2), 84 Stat. 1839; Oct. 4, 1976, Pub. L. 94-455, title XX, § 2001(b)(1), 90 Stat. 1849; Aug. 13, 1981, Pub. L. 97-34, title IV, § 442(a)(2), 95 Stat. 320.)

AMENDMENTS

1981-Subsec. (a). Pub. L. 97-34 substituted in introductory text and par. (1) "calendar year" for "calendar quarter" and in pars. (1) and (2) "calendar periods" for "calendar years and calendar quarters".

Subsec. (b). Pub. L. 97-34 substituted definition of "preceding calendar period" for "calendar quarter", the latter including only the first calendar quarter of the calendar year 1971 and succeeding calendar quarters (covered in par. (2)), the former incorporating former subsec. (c)(1) definition of “preceding calendar years" as meaning calendar years 1932 and 1970 and all calendar years intervening between calendar year 1932 and calendar year 1970 and "calendar year 1932" as including only the portion of such year after June 6, 1932, and former subsec. (c)(2) definition of "preceding calendar quarters" as meaning the first calendar quarter of calendar year 1971 and all calendar quarters intervening between such calendar quarter and the calendar quarter for which the tax is being computed.

Subsecs. (c), (d). Pub. L. 97-34 redesignated subsec. (d) as (c). Former subsec. (c), defining "preceding calendar years" and "preceding calendar quarters", was incorporated in subsec. (b).

1976-Subsec. (a). Pub. L. 94-455 added "tentative" in two places following "(1) a" and "(2) a" and substituted in par. (1) "section 2001(c)" for "this subsection" following "set forth in".

1970-Subsec. (a). Pub. L. 91-614, § 102(a)(2)(A), substituted a computation of tax formula based on the current calendar quarter, preceding calendar quarters, and preceding calendar years for a formula based entirely on the current and preceding calendar years. Subsec. (b). Pub. L. 91-614, § 102(a)(2)(B), substituted the definition of "calendar quarter" for the definition of "calendar year".

Subsec. (c). Pub. L. 91-614, § 102(a)(2)(B), substituted the definition of "preceding calendar years and quarters" for the definition of "preceding calendar years".

EFFECTIVE DATE OF 1981 Amendment Amendment by 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.

EFFECTIVE DATE OF 1976 AMENDMENT

Section 2001(d)(2) of Pub. L. 94-455 provided that: "The amendments made by subsections (b) and (c)(2) [enacting section 2505, amending sections 2502 and 2504, and repealing section 2521 of this title] shall apply to gifts made after December 31, 1976."

EFFECTIVE Date of 1970 AMENDMENT

Amendment by Pub. L. 91-614 applicable with respect to gifts made after Dec. 31, 1970, see section 102(e) of Pub. L. 91-614, set out as a note under section 2501 of this title.

CROSS REFERENCES

Taxable gifts, see section 2503 of this title. Valuation of certain gifts for preceding calendar years, see section 2504 of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2501, 2504 of this title.

§ 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

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.

(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(e)) with respect to such individual as payment for such medical care.

(Aug. 16, 1954, ch. 736, 68A Stat. 404; Dec. 31, 1970, Pub. L. 91-614, title I, § 102(a)(3), 84 Stat. 1839; Nov. 6, 1978, Pub. L. 95-600, title VII, § 702(j)(2), 92 Stat. 2931; Aug. 13, 1981, Pub. L. 97-34, title III, § 311(h)(5), title IV, §§ 441(a), (b), 442(a)(3), 95 Stat. 282, 319, 320.)

AMENDMENTS

1981-Subsec. (a). Pub. L. 97-34, § 442(a)(3)(A), substituted "the total amount of gifts made during the calendar year, less the deductions provided in subchapter C (section 2522 and following)" for ", in the case of gifts made after December 31, 1970, the total amount of gifts made during calendar quarter, less the deductions provided in subchapter C (sec. 2521 and following" and deleted provision that in the case of gifts made before Jan. 1, 1971, the term "taxable gifts" means the total amount of gifts made during the calendar year, less the deductions provided in subchapter C.

Subsec. (b). Pub. L. 97-34, § 442(a)(3)(B), substituted provision that 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 subsec. (a), be included in the total amount of gifts made during such year for provision that in computing taxable gifts for the calendar quarter, in the case of gifts, other than gifts of future interests in property, made to any person by the donor during the calendar year 1971 and subsequent calendar years, $10,000 of such gifts to such person less the aggregate of the amounts of such gifts to such person during all preceding calendar quarters of the calendar year shall not, for purposes of subsec. (a), be included in the total amount of gifts made during such quarter.

Pub. L. 97-34, § 441(a), substituted "$10,000" for "$3,000".

Subsec. (d). Pub. L. 97-34, § 311(h)(5), repealed subsec. (d) which related to individual retirement accounts, etc., for spouse.

Subsec. (e). Pub. L. 97-34, § 441(b), added subsec. (e). 1978-Subsec. (d). Pub. L. 95-600 added subsec. (d). 1970-Subsec. (a). Pub. L. 91-614, § 102(a)(3)(A), divided the definition of "taxable gifts" into gifts made after Dec. 31, 1970, where taxable gifts are based on the total amount of gifts made during the calendar

quarter, less the applicable deductions, and gifts made before Jan. 1, 1971, where taxable gifts are based on the total amount of gifts made during the calendar year, less the applicable deductions.

Subsec. (b). Pub. L. 91-614, § 102(a)(3)(B), substituted provisions with regard to computing taxable gifts for the calendar quarter, in the case of gifts made to any persons by the donor during the calendar year 1971 and subsequent calendar years, $3,000 of such gifts to such person less the aggregate of the amounts of such gifts to such person during all preceding calendar quarters of the calendar year shall not be included in the total amount of gifts made during such quarter for provisions requiring in the case of gifts made to any person by the donor during the calendar year 1955 and subsequent calendar years, the first $3,000 of such gifts to such person shall not be included in the total amount of gifts made during such year.

EFFECTIVE Date of 1981 Amendment

Repeal of subsec. (d) by section 311(h)(5) of Pub. L. 97-34 applicable to taxable years beginning after Dec. 31, 1981, see section 311(i)(1) of Pub. L. 97-34, set out as a note under section 219 of this title.

Section 441(c) of Pub. L. 97-34 provided that:

"(1) IN GENERAL.-Except as provided in paragraph (2), the amendments made by this section [amending this section] shall apply to transfers after December 31, 1981.

"(2) TRANSITIONAL RULE.—If

"(A) an instrument executed before the date which is 30 days after the date of the enactment of this Act (Aug. 13, 1981] provides for a power of appointment which may be exercised during any period after December 31, 1981,

"(B) such power of appointment is expressly defined in terms of, or by reference to, the amount of the gift tax exclusion under section 2503(b) of the Internal Revenue Code of 1954 (or the corresponding provision of prior law),

"(C) the instrument described in subparagraph (A) has not been amended on or after the date which is 30 days after the date of the enactment of this Act [Aug. 13, 1981), and

"(D) the State has not enacted a statute applicable to such gift under which such power of appointment is to be construed as being defined in terms of, or by reference to, the amount of the exclusion under such section 2503(b) after its amendment by subsection (a) [substituting '$10,000' for '$3,000' in subsec. (b) of this section],

then the amendment made by subsection (a) shall not apply to such gift."

Amendment of subsecs. (a) and (b) by section 442(a)(3) 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.

EFFECTIVE Date of 1978 Amendment

Section 702(j)(3)(B) of Pub. L. 95-600 provided that: "The amendment made by paragraph (2) [amending this section] shall apply to transfers made after December 31, 1976."

EFFECTIVE DAte of 1970 Amendment Amendment by Pub. L. 91-614 applicable with respect to gifts made after Dec. 31, 1970, see section 102(e) of Pub. L. 91-614, set out as a note under section 2501 of this title.

CROSS REFERENCES

Calendar quarter defined, see section 2502 of this

title.

Computation of tax, see section 2502 of this title. Estate tax credit for gift tax, see section 2012 of this title.

Gift tax returns, see section 6019 of this title.

Tenancies by entirety, see section 2515 of this title. Transfers in general, see section 2511 of this title.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 1015, 2001, 2012, 2101, 6019 of this title.

§ 2504. Taxable gifts for preceding calendar periods (a) In general

In computing taxable gifts for preceding calendar periods for purposes of computing the tax for any calendar year

(1) there shall be treated as gifts such transfers as were considered to be gifts under the gift tax laws applicable to the calendar period in which the transfers were made,

(2) there shall be allowed such deductions as were provided for under such laws, and

(3) the specific exemption in the amount (if any) allowable under section 2521 (as in effect before its repeal by the Tax Reform Act of 1976) shall be applied in all computations in respect of preceding calendar periods ending before January 1, 1977, for purposes of computing the tax for any calendar year.

(b) Exclusions from gifts for preceding calendar periods

In the case of gifts made to any person by the donor during preceding calendar periods, the amount excluded, if any, by the provisions of gift tax laws applicable to the periods in which the gifts were made shall not, for purposes of subsection (a), be included in the total amount of the gifts made during such preceding calendar periods.

(c) Valuation of certain gifts for preceding calendar periods

If the time has expired within which a tax may be assessed under this chapter or under corresponding provisions of prior laws on the transfer of property by gift made during a preceding calendar period, as defined in section 2502(b), and if a tax under this chapter or under corresponding provisions of prior laws has been assessed or paid for such preceding calendar period, the value of such gift made in such preceding calendar period shall, for purposes of computing the tax under this chapter for any calendar year, be the value of such gift which was used in computing the tax for the last preceding calendar period for which a tax under this chapter or under corresponding provisions of prior laws was assessed or paid.

(d) Net gifts

The term "net gifts" as used in the corresponding provisions of prior laws shall be read as "taxable gifts" for purposes of this chapter. (Aug. 16, 1954, ch. 736, 68A Stat. 405; Dec. 31, 1970, Pub. L. 91-614, title I, § 102(a)(4)(A), 84 Stat. 1839; Oct. 4, 1976, Pub. L. 94-455, title XX, § 2001(c)(2)(A), 90 Stat. 1853; Aug. 13, 1981, Pub. L. 97-34, title IV, § 442(a)(4)(A)-(D), 95 Stat. 321.)

REFERENCES IN TEXT

The Tax Reform Act of 1976, referred to in subsec. (a)(3), is Pub. L. 94-455, Oct. 4, 1976, 90 Stat. 1520, as amended. Section 2521 of this title was repealed by