§ 2012.
(b)
Valuation reductions
In applying, with respect to any gift, the ratio stated in subsection (a), the value at the time of the gift or at the time of the death, referred to in such ratio, shall be reduced—
(1)
by such amount as will properly reflect the amount of such gift which was excluded in determining (for purposes of section 2503(a)), or of corresponding provisions of prior laws, the total amount of gifts made during the calendar quarter (or calendar year if the gift was made before January 1, 1971) in which the gift was made;
(2)
if a deduction with respect to such gift is allowed under section 2056(a) (relating to marital deduction), then by the amount of such value, reduced as provided in paragraph (1); and
(3)
if a deduction with respect to such gift is allowed under sections 2055 or 2106(a)(2) (relating to charitable deduction), then by the amount of such value, reduced as provided in paragraph (1) of this subsection.
(c)
Where gift considered made one-half by spouse
Where the decedent was the donor of the gift but, under the provisions of section 2513, or corresponding provisions of prior laws, the gift was considered as made one-half by his spouse—
(1)
the term “the amount of the tax paid on a gift under chapter 12”, as used in subsection (a), includes the amounts paid with respect to each half of such gift, the amount paid with respect to each being computed in the manner provided in subsection (d); and
(2)
in applying, with respect to such gift, the ratio stated in subsection (a), the value at the time of the gift or at the time of the death, referred to in such ratio, includes such value with respect to each half of such gift, each such value being reduced as provided in paragraph (1) of subsection (b).
([Aug. 16, 1954, ch. 736], [68A Stat. 375]; [Pub. L. 91–614, title I, § 102(d)(2)], Dec. 31, 1970, [84 Stat. 1841]; [Pub. L. 94–455, title XIX, § 1902(a)(1)], title XX, § 2001(a)(3), (c)(1)(B), Oct. 4, 1976, [90 Stat. 1804], 1848, 1850; [Pub. L. 97–34, title IV, § 403(a)(2)(A)], Aug. 13, 1981, [95 Stat. 301]; [Pub. L. 107–16, title V, § 532(c)(1)], June 7, 2001, [115 Stat. 73].)