26 USC 2503 - Taxable gifts

U.S Code last checked for updates: Jan 18, 2025

§ 2503.

Taxable gifts

(a)

General definition

(b)

Exclusions from gifts

(1)

In general

(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Repealed.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), Aug. 13, 1981, 95 Stat. 282]

(e)

Exclusion for certain transfers for educational expenses or medical expenses

(1)

In general

(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

(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

(B)

Private foundation

(Aug. 16, 1954, ch. 736, 68A Stat. 404; Pub. L. 91–614, title I, § 102(a)(3), Dec. 31, 1970, 84 Stat. 1839; Pub. L. 95–600, title VII, § 702(j)(2), Nov. 6, 1978, 92 Stat. 2931; Pub. L. 97–34, title III, § 311(h)(5), title IV, §§ 441(a), (b), 442(a)(3), Aug. 13, 1981, 95 Stat. 282, 319, 320; Pub. L. 99–514, title XVIII, § 1898(h)(1)(B), Oct. 22, 1986, 100 Stat. 2957; Pub. L. 100–647, title I, § 1018(s)(2)(A), (u)(52), Nov. 10, 1988, 102 Stat. 3586, 3593; Pub. L. 101–239, title VII, § 7811(m)(1), Dec. 19, 1989, 103 Stat. 2412; Pub. L. 105–34, title V, § 501(c), Aug. 5, 1997, 111 Stat. 846; Pub. L. 115–97, title I, § 11002(d)(1)(EE), Dec. 22, 2017, 131 Stat. 2060.)

cite as: 26 USC 2503