
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC2504]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                    Subtitle B--Estate and Gift Taxes
 
                          CHAPTER 12--GIFT TAX
 
              Subchapter A--Determination of Tax Liability
 
Sec. 2504. Taxable gifts for preceding calendar periods


(a) In general

    In computing taxable gifts for preceding calendar periods for 
purposes of computing the tax for any calendar year--
        (1) there shall be treated as gifts such transfers as were 
    considered to be gifts under the gift tax laws applicable to the 
    calendar period in which the transfers were made,
        (2) there shall be allowed such deductions as were provided for 
    under such laws, and
        (3) the specific exemption in the amount (if any) allowable 
    under section 2521 (as in effect before its repeal by the Tax Reform 
    Act of 1976) shall be applied in all computations in respect of 
    preceding calendar periods ending before January 1, 1977, for 
    purposes of computing the tax for any calendar year.

(b) Exclusions from gifts for preceding calendar periods

    In the case of gifts made to any person by the donor during 
preceding calendar periods, the amount excluded, if any, by the 
provisions of gift tax laws applicable to the periods in which the gifts 
were made shall not, for purposes of subsection (a), be included in the 
total amount of the gifts made during such preceding calendar periods.

(c) Valuation of gifts

    If the time has expired under section 6501 within which a tax may be 
assessed under this chapter 12 (or under corresponding provisions of 
prior laws) on--
        (1) the transfer of property by gift made during a preceding 
    calendar period (as defined in section 2502(b)); or
        (2) an increase in taxable gifts required under section 2701(d),

the value thereof shall, for purposes of computing the tax under this 
chapter, be the value as finally determined (within the meaning of 
section 2001(f)(2)) for purposes of this chapter.

(d) Net gifts

    The term ``net gifts'' as used in the corresponding provisions of 
prior laws shall be read as ``taxable gifts'' for purposes of this 
chapter.

(Aug. 16, 1954, ch. 736, 68A Stat. 405; Pub. L. 91-614, title I, 
Sec. 102(a)(4)(A), Dec. 31, 1970, 84 Stat. 1839; Pub. L. 94-455, title 
XX, Sec. 2001(c)(2)(A), Oct. 4, 1976, 90 Stat. 1853; Pub. L. 97-34, 
title IV, Sec. 442(a)(4)(A)-(D), Aug. 13, 1981, 95 Stat. 321; Pub. L. 
105-34, title V, Sec. 506(d), Aug. 5, 1997, 111 Stat. 856; Pub. L. 105-
206, title VI, Sec. 6007(e)(2)(B)[(C)], July 22, 1998, 112 Stat. 810.)

                       References in Text

    The Tax Reform Act of 1976, referred to in subsec. (a)(3), is Pub. 
L. 94-455, Oct. 4, 1976, 90 Stat. 1520, as amended. Section 2521 of this 
title was repealed by section 2001(b)(3) of Pub. L. 94-455. For complete 
classification of this Act to the Code, see Tables.


                               Amendments

    1998--Subsec. (c). Pub. L. 105-206 substituted ``gifts'' for 
``certain gifts for preceding calendar periods'' in heading and amended 
text generally. Prior to amendment, text read as follows: ``If the time 
has expired within which a tax may be assessed under this chapter or 
under corresponding provisions of prior laws on the transfer of property 
by gift made during a preceding calendar period, as defined in section 
2502(b), the value of such gift made in such preceding calendar period 
shall, for purposes of computing the tax under this chapter for any 
calendar year, be the value of such gift which was used in computing the 
tax for the last preceding calendar period for which a tax under this 
chapter or under corresponding provisions of prior laws was assessed or 
paid.''
    1997--Subsec. (c). Pub. L. 105-34 struck out ``, and if a tax under 
this chapter or under corresponding provisions of prior laws has been 
assessed or paid for such preceding calendar period'' after ``as defined 
in section 2502(b)''.
    1981--Pub. L. 97-34, Sec. 442(a)(4)(D), substituted ``calendar 
periods'' for ``years and quarters'' in section catchline.
    Subsec. (a). Pub. L. 97-34, Sec. 442(a)(4)(A), substituted in 
introductory text ``preceding calendar periods'' and ``calendar year'' 
for ``preceding calendar years or calendar quarters'' and ``calendar 
quarter'', incorporated existing text in provisions designated pars. (1) 
to (3), and substituted in par. (1) ``calendar period'' for ``years or 
calendar quarters'' and in par. (3) ``preceding calendar periods'' and 
``calendar year'' for ``calendar years or calendar quarters'' and 
``calendar quarter''.
    Subsec. (b). Pub. L. 97-34, Sec. 442(a)(4)(B), substituted in 
heading ``calendar periods'' for ``years and quarters'' and in text 
``preceding calendar periods'' for ``preceding calendar years and 
calendar quarters'', ``the periods'' for ``the years and calendar 
quarters'', and ``such preceding calendar periods'' for ``such years and 
calendar quarters''.
    Subsec. (c). Pub. L. 97-34, Sec. 442(a)(4)(C), substituted in 
heading ``calendar periods'' for ``calendar years and quarters'' and in 
text ``preceding calendar period'' for ``preceding calendar year or 
calendar quarter'' in four places, ``any calendar year'' for ``any 
calendar quarter'', and ``section 2502(b)'' for ``section 2502(c)''.
    1976--Subsec. (a). Pub. L. 94-455 inserted ``(as in effect before 
its repeal by the Tax Reform Act of 1976)'' after ``section 2521'' and 
``ending before January 1, 1977'' after ``years or calendar quarters'' 
and substituted ``of'' for ``to previous'' after ``computations in 
respect''.
    1970--Pub. L. 91-614 substituted ``Taxable gifts for preceding years 
and quarters'' for ``Taxable gifts for preceding years'' in section 
catchline.
    Subsec. (a). Pub. L. 91-614 substituted ``In computing taxable gifts 
for the preceding calendar years or calendar quarters for the purpose of 
computing the tax for any calendar quarter,'' for ``In computing taxable 
gifts for the calendar year 1954 and preceding calendar years for the 
purpose of computing the tax for the calendar year 1955 or any calendar 
year thereafter,'' provided that the laws applicable in the calendar 
quarters as well as the years in which the transfers in question were 
made shall apply, and substituted ``previous calendar years or calendar 
quarters for the purpose of computing the tax for any calendar year or 
calendar quarter'' for ``the calendar year 1954 and previous calendar 
years for the purpose of computing the tax for the calendar year 1955 or 
any calendar year thereafter''.
    Subsec. (b). Pub. L. 91-614 inserted reference to calendar quarters 
in heading, substituted ``during preceding calendar years and calendar 
quarters,'' for ``during the calendar year 1954 and preceding calendar 
years,'' made reference to the amount excluded by gift tax laws 
applicable to the calendar quarters as well as years in which the gifts 
were made, and substituted ``during such years and calendar quarters'' 
for ``during such year''.
    Subsec. (c). Pub. L. 91-614 inserted reference to calendar quarters 
in heading, inserted ``or calendar quarter'' after ``calendar year'' in 
four places, and substituted ``for any calendar quarter,'' for ``for the 
calendar year 1955 and subsequent calendar years,''.
    Subsec. (d). Pub. L. 91-614 struck out ``For years before the 
calendar year 1955'' from explanation of term ``net gifts'' as used in 
corresponding provisions of prior laws.


                    Effective Date of 1998 Amendment

    Amendment by Pub. L. 105-206 effective, except as otherwise 
provided, as if included in the provisions of the Taxpayer Relief Act of 
1997, Pub. L. 105-34, to which such amendment relates, see section 6024 
of Pub. L. 105-206, set out as a note under section 1 of this title.


                    Effective Date of 1997 Amendment

    Amendment by Pub. L. 105-34 applicable to gifts made after Aug. 5, 
1997, see section 506(e)(1) of Pub. L. 105-34, as amended, set out as a 
note under section 2001 of this title.


                    Effective Date of 1981 Amendment

    Amendment by Pub. L. 97-34 applicable with respect to gifts made 
after Dec. 31, 1981, see section 442(e) of Pub. L. 97-34, set out as a 
note under section 2501 of this title.


                    Effective Date of 1970 Amendment

    Amendment by Pub. L. 91-614 applicable with respect to gifts made 
after Dec. 31, 1970, see section 102(e) of Pub. L. 91-614, set out as a 
note under section 2501 of this title.
