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119th Congress

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119th Congress

Title 26 — Internal Revenue Code

Chapter 12 — Gift Tax

§ 2503. Taxable gifts

Statutory text

(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

(1)

In general

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.

(2)

Inflation adjustment

In the case of gifts made in a calendar year after 1998, the $10,000 amount contained in paragraph (1) shall be increased by an amount equal to—

(A)

$10,000, multiplied by

(B)

the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting “calendar year 1997” for “calendar year 2016” in subparagraph (A)(ii) thereof.

If any amount as adjusted under the preceding sentence is not a multiple of $1,000, such amount shall be rounded to the next lowest multiple of $1,000.

(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[(d) Repealed.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), , 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(d)) with respect to such individual as payment for such medical care.

(f)

Waiver of certain pension rights

If any individual waives, before the death of a participant, any survivor benefit, or right to such benefit, under section 401(a)(11) or 417, such waiver shall not be treated as a transfer of property by gift for purposes of this chapter.

(g)

Treatment of certain loans of artworks

(1)

In general

For purposes of this subtitle, any loan of a qualified work of art shall not be treated as a transfer (and the value of such qualified work of art shall be determined as if such loan had not been made) if—

(A)

such loan is to an organization described in section 501(c)(3) and exempt from tax under section 501(c) (other than a private foundation), and

(B)

the use of such work by such organization is related to the purpose or function constituting the basis for its exemption under section 501.

(2)

Definitions

For purposes of this section—

(A)

Qualified work of art

The term “qualified work of art” means any archaeological, historic, or creative tangible personal property.

(B)

Private foundation

The term “private foundation” has the meaning given such term by section 509, except that such term shall not include any private operating foundation (as defined in section 4942(j)(3)).

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

  1. Aug. 16, 1954, ch. 736, 68A Stat. 404 · 68A Stat. 404

    Enacted · 26 U.S.C. § 2503

    Aug. 16, 1954, ch. 736, 68A Stat. 404

    Source evidence

    Code source credit
    Aug. 16, 1954, ch. 736, 68A Stat. 404

  2. Excise, Estate, and Gift Tax Adjustment Act of 1970

    Pub. L. 91–614 § 102(a)(3)(A) · 84 Stat. 1836

    Changed · 26 U.S.C. § 2503(a)

    Pub. L. 91–614, § 102(a)(3)(A), divided 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

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 91–614, § 102(a)(3)(A), divided 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.

    Enacted provision · exact public law section
    (A) Subsection (a) of section 2503 is amended to read as follows: “(a) General Definition.— The term ‘taxable gifts’ means, in the case of gifts made after December 31, 1970, the total amount of gifts made during the calendar quarter, less the deduct ions provided in subchapter C (sec. 2521 and following). In the case of gifts made before January 1, 1971, such term means the total amount of gifts made during the calendar year, less the deductions provided in subchapter C.”

  3. Excise, Estate, and Gift Tax Adjustment Act of 1970

    Pub. L. 91–614 § 102(a)(3)(B) · 84 Stat. 1836

    Substituted · 26 U.S.C. § 2503(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

    Source evidence

    Code amendment note
    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.

    Enacted provision · exact public law section
    (B) The heading and first sentence of subsection (b) of section 2503 are amended to read as follows: “(b) Exclusions From Gifts.— 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, $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, for purposes of subsection (a), be included in the total amount of gifts made during such quarter.”

  4. Pub. L. 95–600 title VII § 702(j)(2) · 92 Stat. 2763

    Added · 26 U.S.C. § 2503(d)

    Pub. L. 95–600 added subsec. (d)

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 95–600 added subsec. (d).

    Enacted provision · exact public law section
    (2) Transfers to individual retirement accounts, etc., for spouse treated as transfers of present interests.— Section 26 USC 2503. 2503 (relating to taxable gifts) is amended by adding at the end thereof the following new subsection: “(d) Individual Retirement Accounts, Etc., for Spouse.— For purposes of subsection (b), any payment made by an individual for the benefit of his spouse— “(1) to an individual retirement account described in section 26 USC 408. 408(a), “(2) for an individual retirement annuity described in section 408(b), or “(3) 26 USC 409. for a retirement bond described in section 409, shall not be considered a gift of a future interest in property to the extent that such payment is allowable as a deduction under section 220”.

  5. Economic Recovery Tax Act of 1981

    Pub. L. 97–34 § 442(a)(3)(A) · 95 Stat. 175

    1. Substituted · 26 U.S.C. § 2503(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”

    2. Struck · 26 U.S.C. § 2503(a)

      Pub. L. 97–34, § 442(a)(3)(A), struck out provision that in the case of gifts made before Jan. 1, 1971, “taxable gifts” means the total amount of gifts made during the calendar year, less the deductions provided in subchapter C

    Source evidence

    Code amendment note
    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 struck out provision that in the case of gifts made before Jan. 1, 1971, “taxable gifts” means the total amount of gifts made during the calendar year, less the deductions provided in subchapter C.

    Enacted provision · exact public law section
    (A) Subsection (a) of section 2503 is amended to read as follows: “(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).”

  6. Economic Recovery Tax Act of 1981

    Pub. L. 97–34 § 442(a)(3)(B) · 95 Stat. 175

    Substituted · 26 U.S.C. § 2503(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

    Source evidence

    Code amendment note
    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.

    Enacted provision · exact public law section
    (B) The first sentence of subsection (b) of section 2503 is amended to read as follows: “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.”

  7. Economic Recovery Tax Act of 1981

    Pub. L. 97–34 § 441(a) · 95 Stat. 175

    Substituted · 26 U.S.C. § 2503(b)

    Pub. L. 97–34, § 441(a), substituted “$10,000” for “$3,000”

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 97–34, § 441(a), substituted “$10,000” for “$3,000”.

    Enacted provision · exact public law section
    (a) Increase in Annual Exclusion.— Subsection (b) of section 2503 26 USC 2503. (relating to annual gift tax exclusion) is amended by striking out “$3,000” and inserting in lieu thereof “$10,000”.

  8. Economic Recovery Tax Act of 1981

    Pub. L. 97–34 § 311(h)(5) · 95 Stat. 175

    Repealed · 26 U.S.C. § 2503(d)

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

    Source evidence

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

    Enacted provision · exact public law section
    (5) Subsection (d) of section 2503 is hereby repealed.

  9. Economic Recovery Tax Act of 1981

    Pub. L. 97–34 § 441(b) · 95 Stat. 175

    Added · 26 U.S.C. § 2503(e)

    Pub. L. 97–34, § 441(b), added subsec. (e)

    Source evidence

    Code amendment note
    Subsec. (e). Pub. L. 97–34, § 441(b), added subsec. (e).

    Enacted provision · exact public law section
    (b) Unlimited Exclusion for Certain Transfers.— Section 2503 (defining taxable gifts) is amended by adding at the end thereof the following new subsection: “(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.”

  10. Tax Reform Act of 1986

    Pub. L. 99–514 title XVIII § 1898(h)(1)(B) · 100 Stat. 2085

    Added · 26 U.S.C. § 2503(f)

    Pub. L. 99–514 added subsec. (f)

    Source evidence

    Code amendment note
    Subsec. (f). Pub. L. 99–514 added subsec. (f).

    Enacted provision · exact public law section
    (B) Section 2503 is amended by adding at the end thereof the following new subsection: “(f) Waiver of Certain Pension Rights.— If any individual waives, before the death of a participant, any survivor benefit, or right to such benefit, under section 401(a)(11) or 417, such waiver shall not be treated as a transfer of property by gift for purposes of this chapter.”

  11. Technical and Miscellaneous Revenue Act of 1988

    Pub. L. 100–647 § 1018(u)(52) · 102 Stat. 3342

    Substituted · 26 U.S.C. § 2503(e)(2)(B)

    Pub. L. 100–647, § 1018(u)(52), substituted “section 213(d)” for “section 213(e)”

    Source evidence

    Code amendment note
    Subsec. (e)(2)(B). Pub. L. 100–647, § 1018(u)(52), substituted “section 213(d)” for “section 213(e)”.

    Enacted provision · exact public law section
    (52) Section 2503(e)(2)(B) of the 1986 Code is amended by striking out “section 213(e)” and inserting in lieu thereof “section 213(d)”.

  12. Technical and Miscellaneous Revenue Act of 1988

    Pub. L. 100–647 § 1018(s)(2)(A) · 102 Stat. 3342

    Added · 26 U.S.C. § 2503(f)

    Pub. L. 100–647, § 1018(s)(2)(A), added subsec. (f) relating to treatment of certain loans of artworks

    Source evidence

    Code amendment note
    Subsec. (f). Pub. L. 100–647, § 1018(s)(2)(A), added subsec. (f) relating to treatment of certain loans of artworks.

    Enacted provision · exact public law section
    (A) Section 2503 of the 1986 Code is amended by adding at the end thereof the following new subsection: “(f) Treatment of Certain Loans of Artworks.— “(1) In general.— For purposes of this subtitle, any loan of a Loans. qualified work of art shall not be treated as a transfer (and the value of such qualified work of art shall be determined as if such loan had not been made) if— “(A) such loan is to an organization described in section 501(c)(3) and exempt from tax under section 501(c) (other than a private foundation), and “(B) the use of such work by such organization is related to the purpose or function constituting the basis for its exemption under section 501. “(2) Definitions.— For purposes of this section— “(A) Qualified work of art.— The term ‘qualified work of art’ means any archaeological, historic, or creative tangible personal property. “(B) Private foundation.— The term ’private foundation’ has the meaning given such term by section 509, except that such term shall not include any private operating foundation (as defined in section 4942(j)(3)).”

  13. Revenue Reconciliation Act of 1989

    Pub. L. 101–239 title VII § 7811(m)(1) · 103 Stat. 2106

    Redesignated · 26 U.S.C. § 2503(f); 26 U.S.C. § 2503(g)

    Pub. L. 101–239 redesignated subsec. (f), relating to treatment of certain loans of artworks, as (g)

    Source evidence

    Code amendment note
    Subsecs. (f), (g). Pub. L. 101–239 redesignated subsec. (f), relating to treatment of certain loans of artworks, as (g).

    Enacted provision · exact public law section
    (1) The subsection (f) of section 2503 added by section 1018 of the 1988 Act is redesignated as subsection (g).

  14. Pub. L. 105–34 title V § 501(c) · 111 Stat. 788

    1. Amended · 26 U.S.C. § 2503(b)

      Pub. L. 105–34 designated existing provisions as par. (1)

    2. Inserted · 26 U.S.C. § 2503(b)

      Pub. L. 105–34 inserted par. heading, realigned margins

    3. Added · 26 U.S.C. § 2503(b)

      Pub. L. 105–34 added par. (2)

    Source evidence

    Code amendment note
    Subsec. (b). Pub. L. 105–34 designated existing provisions as par. (1), inserted par. heading, realigned margins, and added par. (2).

    Enacted provision · exact public law section
    (c) Annual Gift Tax Exclusion.— Subsection (b) of section 2503 is amended— (1) by striking the subsection heading and inserting the following: “(b) Exclusions From Gifts.— “(1) In general.—”, (2) by moving the text 2 ems to the right, and (3) by adding at the end the following new paragraph: “(2) Inflation adjustment.— In the case of gifts made in a calendar year after 1998, the $10,000 amount contained in paragraph (1) shall be increased by an amount equal to— “(A) $10,000, multiplied by “(B) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting ‘calendar year 1997’ for ‘calendar year 1992’ in subparagraph (B) thereof. If any amount as adjusted under the preceding sentence is not a multiple of $1,000, such amount shall be rounded to the next lowest multiple of $1,000.”.

  15. Pub. L. 115–97 title I § 11002(d)(1)(EE) · 131 Stat. 2054

    Substituted · 26 U.S.C. § 2503(b)(2)(B)

    Pub. L. 115–97 substituted “for ‘calendar year 2016’ in subparagraph (A)(ii)” for “for ‘calendar year 1992’ in subparagraph (B)”

    Source evidence

    Code amendment note
    Subsec. (b)(2)(B). Pub. L. 115–97 substituted “for ‘calendar year 2016’ in subparagraph (A)(ii)” for “for ‘calendar year 1992’ in subparagraph (B)”.

    Enacted provision · exact public law section
    (EE) Section 2503(b)(2)(B).

    Effective date note
    Amendment by Pub. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, see section 11002(e) of Pub. L. 115–97, set out as a note under section 1 of this title.

17 of 18 references resolved to an enrolled provision · 1 partial

Notes

Inflation Adjusted Items for Certain Years

For inflation adjustment of certain items in this section, see Revenue Procedures listed in a table under section 1 of this title.

Editorial Notes

Amendments1970–2017 · 8 rounds

2017

Subsec. (b)(2)(B). Pub. L. 115–97 substituted “for ‘calendar year 2016’ in subparagraph (A)(ii)” for “for ‘calendar year 1992’ in subparagraph (B)”.

1997

Subsec. (b). Pub. L. 105–34 designated existing provisions as par. (1), inserted par. heading, realigned margins, and added par. (2).

1989

Subsecs. (f), (g). Pub. L. 101–239 redesignated subsec. (f), relating to treatment of certain loans of artworks, as (g).

1988

Subsec. (e)(2)(B). Pub. L. 100–647, § 1018(u)(52), substituted “section 213(d)” for “section 213(e)”.

Subsec. (f). Pub. L. 100–647, § 1018(s)(2)(A), added subsec. (f) relating to treatment of certain loans of artworks.

1986

Subsec. (f). Pub. L. 99–514 added subsec. (f).

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 , the total amount of gifts made during calendar quarter, less the deductions provided in subchapter C (sec. 2521 and following” and struck out provision that in the case of gifts made before , “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 definition of “taxable gifts” into gifts made after , where taxable gifts are based on the total amount of gifts made during the calendar quarter, less the applicable deductions, and gifts made before , 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.

Statutory Notes and Related Subsidiaries

Effective Date of 2017 Amendment

Amendment by Pub. L. 115–97 applicable to taxable years beginning after , see section 11002(e) of Pub. L. 115–97, set out as a note under section 1 of this title.

Effective Date of 1997 Amendment

Amendment by Pub. L. 105–34 applicable to estates of decedents dying, and gifts made, after , see section 501(f) of Pub. L. 105–34, set out as a note under section 2001 of this title.

Effective Date of 1989 Amendment

Amendment by Pub. L. 101–239 effective, except as otherwise provided, as if included in the provision of the Technical and Miscellaneous Revenue Act of 1988, Pub. L. 100–647, to which such amendment relates, see section 7817 of Pub. L. 101–239, set out as a note under section 1 of this title.

Effective Date of 1988 Amendment

Pub. L. 100–647, title I, § 1018(s)(2)(B), , 102 Stat. 3587, provided that: “The amendment made by subparagraph (A) [amending this section] shall apply to loans after .”

Amendment by section 1018(u)(52) of Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.

Effective Date of 1986 Amendment

Amendment by Pub. L. 99–514 effective as if included in the provision of the Retirement Equity Act of 1984, Pub. L. 98–397, to which such amendment relates, except as otherwise provided, see section 1898(j) of Pub. L. 99–514, set out as a note under section 401 of this title.

Effective Date of 1981 Amendment

Amendment by section 311(h)(5) of Pub. L. 97–34 applicable to taxable years beginning after , see section 311(i)(1) of Pub. L. 97–34, set out as a note under section 219 of this title.

Pub. L. 97–34, title IV, § 441(c), , 95 Stat. 319, as amended by Pub. L. 99–514, § 2, , 100 Stat. 2095, 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 .

“(2)

Transitional rule.—

If—

“(A)

an instrument executed before the date which is 30 days after the date of the enactment of this Act [] provides for a power of appointment which may be exercised during any period after ,

“(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 1986 [formerly I.R.C. 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 [], 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),

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

Amendment by section 442(a)(3) of Pub. L. 97–34 applicable with respect to gifts made after , 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

Pub. L. 95–600, title VII, § 702(j)(3)(B), , 92 Stat. 2932, provided that: “The amendment made by paragraph (2) [amending this section] shall apply to transfers made after .”

Effective Date of 1970 Amendment

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

Plan Amendments Not Required Until January 1, 1989

For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of Pub. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after , see section 1140 of Pub. L. 99–514, as amended, set out as a note under section 401 of this title.

Credits

1954–2017 · 9 acts
  1. 1954Aug. 16, 1954, ch. 736, 68A Stat. 404
  2. 1970Pub. L. 91–614, title I, § 102(a)(3), , 84 Stat. 1839
  3. 1978Pub. L. 95–600, title VII, § 702(j)(2), , 92 Stat. 2931
  4. 1981Pub. L. 97–34, title III, § 311(h)(5), title IV, §§ 441(a), (b), 442(a)(3), , 95 Stat. 282, 319, 320
  5. 1986Pub. L. 99–514, title XVIII, § 1898(h)(1)(B), , 100 Stat. 2957
  6. 1988Pub. L. 100–647, title I, § 1018(s)(2)(A), (u)(52), , 102 Stat. 3586, 3593
  7. 1989Pub. L. 101–239, title VII, § 7811(m)(1), , 103 Stat. 2412
  8. 1997Pub. L. 105–34, title V, § 501(c), , 111 Stat. 846
  9. 2017Pub. L. 115–97, title I, § 11002(d)(1)(EE), , 131 Stat. 2060.
Show as published

(Aug. 16, 1954, ch. 736, 68A Stat. 404; Pub. L. 91–614, title I, § 102(a)(3), , 84 Stat. 1839; Pub. L. 95–600, title VII, § 702(j)(2), , 92 Stat. 2931; Pub. L. 97–34, title III, § 311(h)(5), title IV, §§ 441(a), (b), 442(a)(3), , 95 Stat. 282, 319, 320; Pub. L. 99–514, title XVIII, § 1898(h)(1)(B), , 100 Stat. 2957; Pub. L. 100–647, title I, § 1018(s)(2)(A), (u)(52), , 102 Stat. 3586, 3593; Pub. L. 101–239, title VII, § 7811(m)(1), , 103 Stat. 2412; Pub. L. 105–34, title V, § 501(c), , 111 Stat. 846; Pub. L. 115–97, title I, § 11002(d)(1)(EE), , 131 Stat. 2060.)

Parsed from the official OLRC USLM XML in data/usc_all/usc26.xml · release point 119-108 · OLRC build 2026-09-16

USLM identifier /us/usc/t26/s2503