§2504 — Taxable gifts for preceding calendar periods
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Statute Text — 26 U.S.C. §2504
In computing taxable gifts for preceding calendar periods for purposes of computing the tax for any calendar year—
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,
there shall be allowed such deductions as were provided for under such laws, and
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.
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.
If the time has expired under section 6501 within which a tax may be assessed under this chapter 12 (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)); or
an increase in taxable gifts required under section 2701(d),
the value thereof shall, for purposes of computing the tax under this chapter, be the value as finally determined (within the meaning of section 2001(f)(2)) for purposes of this chapter.
The term “net gifts” as used in the corresponding provisions of prior laws shall be read as “taxable gifts” for purposes of this chapter.
Treasury Regulations
- Treas. Reg. §Treas. Reg. §25.2504-1 Taxable gifts for preceding calendar periods
- Treas. Reg. §Treas. Reg. §25.2504-1(a) In order to determine the correct gift tax liability for any calendar period it is necessary to ascertain the correct amount, if any, of the aggregate sum of the taxable gifts for each of the “preceding calendar periods” (as defined in § 25.
- Treas. Reg. §Treas. Reg. §25.2504-1(b) In determining the aggregate sum of the taxable gifts for the “preceding calendar periods” (as defined in § 25.
- Treas. Reg. §Treas. Reg. §25.2504-1(c) If the donor and the donor's spouse consented to have gifts made to third parties considered as made one-half by each spouse, pursuant to the provisions of section 2513 or section 1000(f) of the Internal Revenue Code of 1939 (which corresponds to section 2513), these provisions shall be taken into account in determining the aggregate sum of the taxable gifts for the preceding calendar periods (under paragraph (a) of this section).
- Treas. Reg. §Treas. Reg. §25.2504-1(d) If interpretations of the gift tax law in preceding calendar periods resulted in the erroneous inclusion of property for gift tax purposes that should have been excluded, or the erroneous exclusion of property that should have been included, adjustments must be made in order to arrive at the correct aggregate of taxable gifts for the preceding calendar periods (under paragraph (a) of this section).
- Treas. Reg. §Treas. Reg. §25.2504-2 Determination of gifts for preceding calendar periods
- Treas. Reg. §Treas. Reg. §25.2504-2(a) Gifts made before August 6, 1997.
- Treas. Reg. §Treas. Reg. §25.2504-2(b) Gifts made or section 2701(d) taxable events occurring after August 5, 1997.
- Treas. Reg. §Treas. Reg. §25.2504-2(c) Examples.
- Treas. Reg. §Treas. Reg. §25.2504-2(d) Effective dates.
6 Citing Cases
From 1979 through 1983, petitioner self-insured its workers' compensation risks in California. R.L. Kautz, a company unrelated to petitioner or Liberty Mutual, administered this program. Liberty Mutual wrote the workers' compensation insurance for petitioner in all other States that were not monopolistic during this period. Any em