§2502 — Rate of tax

20 cases·1 followed·19 cited—5% support

Statute Text — 26 U.S.C. §2502

(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 under 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 under such section, 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.

Treasury Regulations

Treas. Reg. §Treas. Reg. §25.2502-1 Rate of tax
Treas. Reg. §Treas. Reg. §25.2502-1(a) Computation of tax.
Treas. Reg. §Treas. Reg. §25.2502-1(b) Rate of tax.
Treas. Reg. §Treas. Reg. §25.2502-1(c) Definitions.
Treas. Reg. §Treas. Reg. §25.2502-1(d) Examples.
Treas. Reg. §Treas. Reg. §25.2502-1(i) §25.2502-1(i)
Treas. Reg. §Treas. Reg. §25.2502-2 Donor primarily liable for tax

20 Citing Cases

Estate of Sally J. Anenberg, Donor, Deceased, Steven B. Anenberg, Executor and Special Administrator, Petitioner(s) 162 T.C. No. 9 · 2024

As relevant here, it provides: “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 .

Estate of Sheldon C. Sommers, Deceased, Stephan C. Chait, Temporary Administrator, Petitioner, Wendy Sommers, Julie Sommers Neuman and Mary Lee Sommers-Gosz, Intervenors, Petitioners · 2017

ofthe gift tax liability on a net gift rests on the premise that gift tax is ultimately paid by the donor, using the donee as a conduit. See Estate ofSachs v. Commissioner, 88 3Petitioner apparently means to refer to subsec. (c), rather than (d), ofsec. 2502. Sec. 2502(c) provides: "The [gift] tax imposed by section 2501 shall be paid by the donor." - 15 - T.C. 769, 778 (1987), affd in part and rev'd in part, 856 F.2d 1158 (8th Cir. 1988); Estate ofSommers v. Commissioner, at *50 n.25. Petition

Estate of Anne Y. Petter, Deceased; Terrence D. Petter, Personal Representative, Petitioners T.C. Memo. 2009-280 · 2009

Section 2502 explains the cumulative aspects of gift tax, whereby the tax rate for a gift is set by looking at that year's gifts in relation to the donor's lifetime giving . Gifts of $10,000 per- 16 In the midst of this back-and-forth is an argument about who should bear the burden of proof under section 7491 . The issues in this case, however, are

Brown v. Commissioner 52 T.C. 50 · 1969

O'Neal v. Commissioner 102 T.C. 666 · 1994

Estate of Smith v. Commissioner 94 T.C. 872 · 1990

Estate of Sachs v. Commissioner 88 T.C. 769 · 1987

Estate of Dillingham v. Commissioner 88 T.C. 1569 · 1987

Estate of DiMarco v. Commissioner 87 T.C. 653 · 1986

Hollingsworth v. Commissioner 86 T.C. 91 · 1986

Estate of Kolker v. Commissioner 80 T.C. 1082 · 1983

Carson v. Commissioner 71 T.C. 252 · 1978

Estate of Henry v. Commissioner 69 T.C. 665 · 1978

Clark v. Commissioner 65 T.C. 126 · 1975

Hirst v. Commissioner 63 T.C. 307 · 1974

Hambleton v. Commissioner 60 T.C. 558 · 1973

Krause v. Commissioner 56 T.C. 1242 · 1971

Ellis v. Commissioner 51 T.C. 182 · 1968

Haygood v. Commissioner 42 T.C. 936 · 1964

Estate of Morgens v. Commissioner 678 F.3d 769 · Cir.

§2502 — Rate of tax

20 Citing Cases

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