§2505 — Unified credit against gift tax
15 cases·1 followed·14 cited—7% support
Statute Text — 26 U.S.C. §2505
In the case of a citizen or resident of the United States, there shall be allowed as a credit against the tax imposed by section 2501 for each calendar year an amount equal to—
the applicable credit amount in effect under section 2010(c) which would apply if the donor died as of the end of the calendar year, reduced by
the sum of the amounts allowable as a credit to the individual under this section for all preceding calendar periods.
For purposes of applying paragraph (2) for any calendar year, the rates of tax in effect under section 2502(a)(2) for such calendar year shall, in lieu of the rates of tax in effect for preceding calendar periods, be used in determining the amounts allowable as a credit under this section for all preceding calendar periods.
The amount allowable under subsection (a) shall be reduced by an amount equal to 20 percent of the aggregate amount allowed as a specific exemption under section 2521 (as in effect before its repeal by the Tax Reform Act of 1976) with respect to gifts made by the individual after September 8, 1976.
The amount of the credit allowed under subsection (a) for any calendar year shall not exceed the amount of the tax imposed by section 2501 for such calendar year.
Treasury Regulations
- Treas. Reg. §Treas. Reg. §25.2505-0 Table of contents
- Treas. Reg. §Treas. Reg. §25.2505-0(a) Donor who is surviving spouse is limited to DSUE amount of last deceased spouse.
- Treas. Reg. §Treas. Reg. §25.2505-0(b) Manner in which DSUE amount is applied.
- Treas. Reg. §Treas. Reg. §25.2505-0(c) Special rule in case of multiple deceased spouses and previously-applied DSUE amount.
- Treas. Reg. §Treas. Reg. §25.2505-0(d) Date DSUE amount taken into consideration by donor who is a surviving spouse.
- Treas. Reg. §Treas. Reg. §25.2505-0(e) Authority to examine returns of deceased spouses.
- Treas. Reg. §Treas. Reg. §25.2505-0(f) Availability of DSUE amount for nonresidents who are not citizens.
- Treas. Reg. §Treas. Reg. §25.2505-0(g) Effective/applicability date.
- Treas. Reg. §Treas. Reg. §25.2505-1 Unified credit against gift tax; in general
- Treas. Reg. §Treas. Reg. §25.2505-1(a) General rule.
- Treas. Reg. §Treas. Reg. §25.2505-1(b) Applicable rate of tax.
- Treas. Reg. §Treas. Reg. §25.2505-1(c) Special rule in case of certain gifts made before 1977.
- Treas. Reg. §Treas. Reg. §25.2505-1(d) Credit limitation.
- Treas. Reg. §Treas. Reg. §25.2505-1(e) Effective/applicability date.
- Treas. Reg. §Treas. Reg. §25.2505-2 Gifts made by a surviving spouse having a DSUE amount available
- Treas. Reg. §Treas. Reg. §25.2505-2(a) Donor who is surviving spouse is limited to DSUE amount of last deceased spouse—(1) In general.
- Treas. Reg. §Treas. Reg. §25.2505-2(b) Manner in which DSUE amount is applied.
- Treas. Reg. §Treas. Reg. §25.2505-2(c) Special rule in case of multiple deceased spouses and previously-applied DSUE amount—(1) In general.
- Treas. Reg. §Treas. Reg. §25.2505-2(d) Date DSUE amount taken into consideration by donor who is a surviving spouse—(1) General rule.
- Treas. Reg. §Treas. Reg. §25.2505-2(e) Authority to examine returns of deceased spouses.
- Treas. Reg. §Treas. Reg. §25.2505-2(f) Availability of DSUE amount for nonresidents who are not citizens.
- Treas. Reg. §Treas. Reg. §25.2505-2(g) Effective/applicability date.
- Treas. Reg. §Treas. Reg. §25.2505-2(i) If the executor of the decedent's estate supersedes the portability election by filing a subsequent estate tax return in accordance with § 20.
15 Citing Cases
section 2501(a)?5 We hold that it was. 1(...continued) in effect for the years relevant to the transactions at issue. All Rule references are to the Tax Court Rules of Practice and Procedure. 2 By virtue of the operation of the unified credit under sec. 2505, respondent determined deficiencies for 1989 even though the basis for those deficiencies relates to transfers made during 1982. 3 Respondent's determinations against petitioner Robert N. Miller III, who is and was during the years relevant
Subsection (b) made amendments to section 2505, a gift tax provision.
After application ofthe unified credit under section 2505, each petitioner reported no gift tax due.
Perhaps the most important section for-our purposes, however, is section 2505, the unified credit against gift tax .
ip interests of each of the Rathbun children from 14.29 percent to 13.33 percent. Consequently, the Rathbun children in 1993 each made a gift valued at $250,000 to their parents, but no gift tax was owed because of the available unified credit under section 2505. On December 8, 2000, petitioners submitted requests to respondent for administrative costs under section 7430. Linda Johnson and Marc Fretwell filed joint requests with their spouses, Arlen Johnson and Dorene Fretwell. On May 27, 2003,
ip interests of each of the Rathbun children from 14.29 percent to 13.33 percent. Consequently, the Rathbun children in 1993 each made a gift valued at $250,000 to their parents, but no gift tax was owed because of the available unified credit under section 2505. On December 8, 2000, petitioners submitted requests to respondent for administrative costs under section 7430. Linda Johnson and Marc Fretwell filed joint requests with their spouses, Arlen Johnson and Dorene Fretwell. On May 27, 2003,
ip interests of each of the Rathbun children from 14.29 percent to 13.33 percent. Consequently, the Rathbun children in 1993 each made a gift valued at $250,000 to their parents, but no gift tax was owed because of the available unified credit under section 2505. On December 8, 2000, petitioners submitted requests to respondent for administrative costs under section 7430. Linda Johnson and Marc Fretwell filed joint requests with their spouses, Arlen Johnson and Dorene Fretwell. On May 27, 2003,
ip interests of each of the Rathbun children from 14.29 percent to 13.33 percent. Consequently, the Rathbun children in 1993 each made a gift valued at $250,000 to their parents, but no gift tax was owed because of the available unified credit under section 2505. On December 8, 2000, petitioners submitted requests to respondent for administrative costs under section 7430. Linda Johnson and Marc Fretwell filed joint requests with their spouses, Arlen Johnson and Dorene Fretwell. On May 27, 2003,
ip interests of each of the Rathbun children from 14.29 percent to 13.33 percent. Consequently, the Rathbun children in 1993 each made a gift valued at $250,000 to their parents, but no gift tax was owed because of the available unified credit under section 2505. On December 8, 2000, petitioners submitted requests to respondent for administrative costs under section 7430. Linda Johnson and Marc Fretwell filed joint requests with their spouses, Arlen Johnson and Dorene Fretwell. On May 27, 2003,
Petitioner reported no other gifts to Meredith, Nancy, or Permenter during the years at issue. 3 The use of the word "gifts" is not dispositive of the subject of the gifts by petitioner, i.e., of funds or interests in the bonds, which is the critical issue herein. - 6 - When purchased bonds were redeemed, each party to the agreements re