26 USC 2501 - Imposition of tax

U.S Code last checked for updates: Nov 22, 2024

§ 2501.

Imposition of tax

(a)

Taxable transfers

(1)

General rule

(2)

Transfers of intangible property

(3)

Exception

(A)

Certain individuals

(B)

Credit for foreign gift taxes

(4)

Transfers to political organizations

(5)

Transfers of certain stock

(A)

In general

In the case of a transfer of stock in a foreign corporation described in subparagraph (B) by a donor to whom section 877(b) applies for the taxable year which includes the date of the transfer—

(i)

section 2511(a) shall be applied without regard to whether such stock is situated within the United States, and

(ii)

the value of such stock for purposes of this chapter shall be its U.S.-asset value determined under subparagraph (C).

(B)

Foreign corporation described

A foreign corporation is described in this subparagraph with respect to a donor if—

(i)

the donor owned (within the meaning of section 958(a)) at the time of such transfer 10 percent or more of the total combined voting power of all classes of stock entitled to vote of the foreign corporation, and

(ii)

such donor owned (within the meaning of section 958(a)), or is considered to have owned (by applying the ownership rules of section 958(b)), at the time of such transfer, more than 50 percent of—

(I)

the total combined voting power of all classes of stock entitled to vote of such corporation, or

(II)

the total value of the stock of such corporation.

(C)

U.S.-asset value

For purposes of subparagraph (A), the U.S.-asset value of stock shall be the amount which bears the same ratio to the fair market value of such stock at the time of transfer as—

(i)

the fair market value (at such time) of the assets owned by such foreign corporation and situated in the United States, bears to

(ii)

the total fair market value (at such time) of all assets owned by such foreign corporation.

(6)

Transfers to certain exempt organizations

(b)

Certain residents of possessions considered citizens of the United States

(c)

Certain residents of possessions considered nonresidents not citizens of the United States

(d)

Cross references

(1)

For increase in basis of property acquired by gift for gift tax paid, see section 1015(d).

(2)

For exclusion of transfers of property outside the United States by a nonresident who is not a citizen of the United States, see section 2511(a).

(Aug. 16, 1954, ch. 736, 68A Stat. 403; Pub. L. 85–866, title I, §§ 43(b), 102(b), Sept. 2, 1958, 72 Stat. 1641, 1674; Pub. L. 86–779, § 4(d), Sept. 14, 1960, 74 Stat. 1000; Pub. L. 89–809, title I, § 109(a), Nov. 13, 1966, 80 Stat. 1574; Pub. L. 91–614, title I, § 102(a)(1), Dec. 31, 1970, 84 Stat. 1838; Pub. L. 93–625, § 14(a), Jan. 3, 1975, 88 Stat. 2121; Pub. L. 94–455, title XIX, §§ 1902(a)(10), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1805, 1834; Pub. L. 97–34, title IV, § 442(a)(1), Aug. 13, 1981, 95 Stat. 320; Pub. L. 100–647, title III, § 3031(a)(2), Nov. 10, 1988, 102 Stat. 3635; Pub. L. 101–508, title XI, § 11601(b)(2), Nov. 5, 1990, 104 Stat. 1388–490; Pub. L. 104–191, title V, § 511(e)(2), (f)(2)(B), Aug. 21, 1996, 110 Stat. 2098, 2100; Pub. L. 105–34, title XVI, § 1602(g)(5), Aug. 5, 1997, 111 Stat. 1095; Pub. L. 108–357, title VIII, § 804(d), Oct. 22, 2004, 118 Stat. 1571; Pub. L. 114–113, div. Q, title IV, § 408(a), Dec. 18, 2015, 129 Stat. 3120.)

cite as: 26 USC 2501