§2501 — Imposition of tax
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Statute Text — 26 U.S.C. §2501
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.
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.
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.
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.
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.
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—
section 2511(a) shall be applied without regard to whether such stock is situated within the United States, and
the value of such stock for purposes of this chapter shall be its U.S.-asset value determined under subparagraph (C).
A foreign corporation is described in this subparagraph with respect to a donor if—
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
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—
the total combined voting power of all classes of stock entitled to vote of such corporation, or
the total value of the stock of such corporation.
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—
the fair market value (at such time) of the assets owned by such foreign corporation and situated in the United States, bears to
the total fair market value (at such time) of all assets owned by such foreign corporation.
Paragraph (1) shall not apply to the transfer of money or other property to an organization described in paragraph (4), (5), or (6) of section 501(c) and exempt from tax under section 501(a), for the use of such organization.
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.
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.
For increase in basis of property acquired by gift for gift tax paid, see section 1015(d).
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).
Treasury Regulations
- Treas. Reg. §Treas. Reg. §25.2501-1 Imposition of tax
- Treas. Reg. §Treas. Reg. §25.2501-1(a) Did not result from the application of section 301(b), 350, or 355 of the Immigration and Nationality Act, as amended (8 U.
- Treas. Reg. §Treas. Reg. §25.2501-1(b) Resident.
- Treas. Reg. §Treas. Reg. §25.2501-1(c) Certain residents of possessions considered citizens of the United States.
- Treas. Reg. §Treas. Reg. §25.2501-1(d) Certain residents of possessions considered nonresidents not citizens of the United States.
100 Citing Cases
2501 for filing Tucker Act claim is jurisdictional). We thus reaffirm our rulings that the 30-day filing period prescribed by section 6330(d)(1) is jurisdictional and accordingly hold that equitable tolling does not apply.7 7Every Court ofAppeals to consider the question agrees with this conclu- sion.
Although the Code does not define what constitutes a gift for purposes ofsection 2501, transfers subject to the gift tax "are not confined to those only which, being without a valuable consideration, accord with the common law concept ofgifts, but embrace as well sales, exchanges, and other dispositions ofproperty for a consideration to the extent that the value ofthe propertytransferred by the donor exceeds the value in money or money's
Held: The consequences of the transactions here are governed by the principles set out in Estate of Anenberg v. Commissioner, No. 856-21, 162 T.C. (May 20, 2024) (reviewed). Held, further, following Estate of Anenberg, assuming there was a transfer of property under I.R.C. § 2519 when the Residuary Trust was commuted, S is not liable for gift tax under I.R.C. § 2501 because S made no gratuitous transfers, as required by I.R.C.
Held: Assuming there was a transfer of property under I.R.C. § 2519 when the marital trusts were terminated, E is not liable for gift tax under I.R.C. § 2501 because S received back the interests in property that she was treated as holding and transferring under I.R.C. §§ 2056(b)(7)(A) and 2519 and made no gratuitous transfer, as required by I.R.C.
Section 2501 provides for the imposition of tax on gifts made by individuals.
The tax imposed by section 2501 applies whether the transfer is in trust or otherwise, whether the gift is direct or indirect, and whether the property is real or personal, tangible or intangible.
The tax imposed by section 2501 applies whether the transfer is in tirust or otherwise, whether the gift is direct or indirect, and whether the property is real or Personal, tangible or intangible.
We read that stipulation (and the agreed-upon $48.60 value) as inapplicable to this case because, as we hold, the formula clauses "control" the valuation of the JHHC stock.
- 98 - Accordingly, pursuant to section 2501, the entire $9,883,832 transfer is subject to gift tax, and a charitable deduction is allowed for the $2,972,899 (i.e., $9,883,832 - $6,910,933) transferred to or for the use of the Symphony and CFT.
I know of no provision in the Code that requires us to treat the term “property” used in section 1031(a)(1) differently for purposes of section 2501, which imposes a tax on the transfer of property by gift.
Specifically, R asserts that C entered into an enforceable contract to make gifts to PR. PR denies that C was obligated to transfer property under New York law. R also asserts that C sold an interest in the family business to PM for less than adequate consideration. PM argues that adequate consideration was provided for the transf
Although the Code does not define what constitutes a gift for purposes ofsection 2501, transfers subject to the gift tax "are not confined to those only which, being without a valuable consideration, accord with the common law concept ofgifts, but embrace as well sales, exchanges, and other dispositions ofproperty for a consideration to the extent that the value ofthe propertytransferred by the donor exceeds the value i
Based on our review ofthe record, we find that the $500,000 transfers of FLP funds to Moore's children were not loans but gifts subject to section 2501 to the extent that they exceed the exclusion under section 2503(b).
Accordingly, pursuant to section 2501, the entire $9,883,832 transfer is subject to gift tax, and a charitable deduction is allowed for the $2,972,899 (i.e., $9,883,832 - $6,910,933) transferred to or for the use of the Symphony and CFT.
The tax is based on the taxable gifts made in a calendar year. § 2502(a). The term “taxable gift” means all gifts made in the year less certain deductions not relevant here. § 2503(a). The total amount of gifts in the year is the sum of the value of gifts made in the year in excess of the exclusion amount in section 2503(b).4 “Where propert
The value of a gift made in property is “the value thereof at the date of the gift.” § 2512(a). That value is “the price at which such property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell, and both having reasonable knowledge of relevant facts.” Treas. Reg. § 25.2512-
Section 2511(a) provides that this gift tax “shall apply whether the transfer is in trust or otherwise, whether the gift is direct or indirect, and whether the property is real or personal, tangible or intangible”.
Based on our review ofthe record, we find that the $500,000 transfers of FLP funds to Moore's children were not loans but gifts subject to section 2501 to the extent that they exceed the exclusion under section 2503(b).
2502(c) provides: "The [gift] tax imposed by section 2501 shall be paid by the donor." - 15 - T.C.
Section 2511(a) provides that "the tax imposed by section 2501 shall apply whether the transfer is in trust or otherwise." The parties agree that petitioners' gifts to the trust in 2007 were completed gifts within the meaning of these provisions.
set, we note that this is an income tax case. Respondent has not determined a deficiency in gift tax, and we do not here consider whether Mr. Hughes' gifts ofthe KCI shares to Mrs. Hughes were taxable transfers underthe gift tax statutes. See, e.g., sec. 2501 (imposing a tax "on the transfer ofproperty by gift * * * by any individual, resident or nonresident"). We thus analyze only - 19 - [*19] the income tax consequences ofthe transfer. Petitioners bear the burden of proof.7 See Rule 142(a). I.
Section 2511(a) provides that "the tax imposed by section 2501 shall apply whether the transfer is in trust or otherwise." The parties agree that petitioners' gifts to the trust in 2007 were completed gifts within the meaning of these provisions.
Framing the Issues Section 2501 imposes a tax on the transferofpropertyby gift by an individual.
Section 2501 imposes a tax on the transfer of property by gift . The gift tax applies whether the gift is direct or indirect . Sec . 2511 . Congress intended to use the term "gifts" in its most comprehensive sense . Commissioner v . Wemyss , 324 U .S . 303, 306 (1945) . Accordingly, transfers of property by gift, by whatever means effected, are sub
- 55 purposes of section 2501, which imposes a tax on, the transfer of property by gift .
Section 2502(c) clearly provides that gift tax is the liability of the donor : "The [gift] tax imposed by section 2501 shall be paid by the donor ." Section 25 .2511-2(a), Gift Tax Regs., also provides that "the tax is a primary and personal liability of the donor, is an excise upon his act of making the transfer, is measured by the va
Section 2502(c) clearly provides that gift tax is the liability of the donor: “The [gift] tax imposed by section 2501 shall be paid by the donor.” Section 25.2511-2(a), Gift Tax Regs., also provides that “the tax is a primary and personal liability of the donor, is an excise upon his act of making the transfer, is measured by the value of the property passing from the donor”.
Arm’s-Length Quality of Huber Stock Sales Section 2501 imposes a tax on the transfer of property by gift during the taxable year.
Arm’s-Length Quality of Huber Stock Sales Section 2501 imposes a tax on the transfer of property by gift during the taxable year.
OPINION Section 2501 imposes a tax on the transfer of property by gift during the taxable year. This tax is imposed whether the transfer is in trust or otherwise and whether the gift is direct or indirect. See sec. 2511. A gift of property is valued as of the date of the transfer. See sec. 2512(a). The gift is measured by the value of the property passing
Statutory and Regulatory Law Section 2501 imposes a tax for each calendar year “on the transfer of property by gift” by any taxpayer, and section 2511(a) further clarifies that such tax “shall apply whether the transfer is in trust or otherwise, whether the gift is direct or indirect, and whether the property is real or personal, tangible or intangible”.
Statutory and Regulatory Law Section 2501 imposes a tax for each calendar year “on the transfer of property by gift” by any taxpayer, and section 2511(a) further clarifies that such tax “shall apply whether the transfer is in trust or otherwise, whether the gift is direct or indirect, and whether the property is real or personal, tangible or intangible”.
General Rules As a general rule, section 2501 imposes a tax for each calendar year “on the transfer of property by gift” by any taxpayer, and section 2511(a) further clarifies that such tax “shall apply whether the transfer is in trust or otherwise, whether the gift is direct or indirect, and whether the property is real or personal, tangible or intangible”.
Statutory and Regulatory Law Section 2501 imposes a tax for each calendar year “on the transfer of property by gift” by any taxpayer, and section 2511(a) further clarifies that such tax “shall apply whether the transfer is in trust or otherwise, whether the gift is direct or indirect, and whether the property is real or personal, tangible or intangible”.
Section 2501 imposes a tax for each calendar year on the transfer of property by gift. A gift of property is valued as of the date of the transfer. See sec. 2512(a). Generally, where property is transferred in trust but the donor retains an interest in such property, the value of the gift is the value of the property that is transferred, less the v
General Rules Section 2501 imposes a tax for each calendar year on the transfer of property by gift by any taxpayer.
General Legal Principles Section 2501 generally imposes an excise tax on the transfer of property by gift during the taxable year.
General Rules Section 2501 imposes a tax for each calendar year on the transfer of property by gift by any taxpayer.
General Rules Section 2501 imposes a tax for each calendar year on the transfer of property by gift by any taxpayer.
General Legal Principles Section 2501 generally imposes an excise tax on the transfer of property by gift during the taxable year.
General Rules Section 2501 imposes a tax for each calendar year on the transfer of property by gift by any taxpayer.
Section 2512 provides that if a gift is made in property, “the value thereof at the date of the gift shall be considered the amount of the gift.” - 21 - Pursuant to section 25.2512-1, Gift Tax Regs., the value of the gift is the price at which such property would change hands between a willing buyer and a willing seller, ne
Code and Regulations Section 2501 imposes a tax for each calendar year on the transfer of property by gift during such calendar year by individuals.
Section 2501(a) imposes a tax “on the transfer of property by gift”, and section 2511(a) provides that “the tax imposed by section 2501 shall apply * * * whether the gift is direct or indirect”.
Section 2501(a) imposes a tax “on the transfer of property by gift”, and section 2511(a) provides that “the tax imposed by section 2501 shall apply * * * whether the gift is direct or indirect”.
Section 2501(a) imposes a tax "on the transfer of property by gift", and section 2511(a) provides that "the tax imposed by section 2501 shall apply * * * whether the gift is direct or indirect".
Section 2501(a) imposes a tax “on the transfer of property by gift”, and section 2511(a) provides that “the tax imposed by section 2501 shall apply * * * whether the gift is direct or indirect”.
Section 2501(a) imposes a tax “on the transfer of property by gift”, and section 2511(a) provides that “the tax imposed by section 2501 shall apply * * * whether the gift is direct or indirect”.
Section 2501 imposes a tax for each calendar year on the transfer of property by gift by any individual. Section 2512 provides that if a gift is made in property, “the value thereof at the date of the gift shall be considered the amount of the gift.” Pursuant to section 25.2512-1, Gift Tax Regs., the value of the gift is the price at which such pro
Background Section 2501 imposes a tax on gifts of property by an individual.
2503(b) provides that the first $10,000 of gifts made to any person during a year is excluded in computing the total amount of gifts made during that year.
Section 2501 imposes a tax on the transfer of property by gift. Sec. 2501(a); sec. 25.2501-1(a), Gift Tax Regs. The gift tax is an excise tax on the transfer of property and is not a tax on the subject of the gift. Sec. 25.2511- 1(a), Gift Tax Regs. It applies to all gift transfers whether the gift is direct or indirect, and whether the property is
Section 2501 imposes a tax on the transfer of property by gift. Sec. 2501(a); sec. 25.2501-1(a), Gift Tax Regs. The gift tax is an excise tax on the transfer of property and is not a tax on the subject of the gift. Sec. 25.2511- 1(a), Gift Tax Regs. It applies to all gift transfers whether the gift is direct or indirect, and whether the property is
3It is not clear whether they meant to avoid probate, estate tax, or inheritance tax. -14- 3. Petitioners' Other Contentions Petitioners contend that we should recognize Prindle for Federal tax purposes because the State of Washington and Oxyfresh recognized it as valid. We disagree. We need not recognize an entity for Federal tax purpo
Section 2501 imposes a tax on property transferred by gift. Sec. 2501(a); see also sec. 2511(a). If property is transferred for less than adequate and full consideration in money or money's worth, the amount by which the value of the property exceeds the value of the consideration is deemed a gift. Sec. 2512(b); Commissioner v. Wemyss, 324 U.S. 303
3It is not clear whether they meant to avoid probate, estate tax, or inheritance tax. -14- 3. Petitioners' Other Contentions Petitioners contend that we should recognize Prindle for Federal tax purposes because the State of Washington and Oxyfresh recognized it as valid. We disagree. We need not recognize an entity for Federal tax purpo
0,000 exclusion under sec. 2503(b), and, therefore, $40,000 of that check is an adjusted taxable gift, which is added to decedent’s reported gross estate. Because we find for respondent on other grounds, we need not address these arguments. Although sec. 2501 imposes a tax on the transfer of property by gift, sec. 2503(b) provides that the first $10,000 of gifts made to any person during a year is excluded in computing the total amount of gifts made during that year. Estate of Cristofani v. Comm
Section 2501 imposes, generally, a tax on gifts of property by an individual. The gift is measured by the value of the property passing from the donor; if the gift is made in property, the property's value at the date of the gift is considered the amount of the gift. Sec. 2512(a). Fair market value is determined to be the price at which the propert
Background Section 2501 imposes a tax on gifts of property by an individual.