
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document affected by Public Law 107-16 Section 511(e)]
[CITE: 26USC2511]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                    Subtitle B--Estate and Gift Taxes
 
                          CHAPTER 12--GIFT TAX
 
                         Subchapter B--Transfers
 
Sec. 2511. Transfers in general


(a) Scope

    Subject to the limitations contained in this chapter, the tax 
imposed by section 2501 shall apply whether the transfer is in trust or 
otherwise, whether the gift is direct or indirect, and whether the 
property is real or personal, tangible or intangible; but in the case of 
a nonresident not a citizen of the United States, shall apply to a 
transfer only if the property is situated within the United States.

(b) Intangible property

    For purposes of this chapter, in the case of a nonresident not a 
citizen of the United States who is excepted from the application of 
section 2501(a)(2)--
        (1) shares of stock issued by a domestic corporation, and
        (2) debt obligations of--
            (A) a United States person, or
            (B) the United States, a State or any political subdivision 
        thereof, or the District of Columbia,

which are owned and held by such nonresident shall be deemed to be 
property situated within the United States.

(Aug. 16, 1954, ch. 736, 68A Stat. 406; Pub. L. 89-809, title I, 
Sec. 109(b), Nov. 13, 1966, 80 Stat. 1575.)


                               Amendments

    1966--Subsec. (b). Pub. L. 89-809 inserted reference to nonresidents 
who are excepted from the application of section 2501(a)(2) and expanded 
section to include debt obligations of United States persons or the 
United States, a State or any political subdivision thereof, or the 
District of Columbia.


                    Effective Date of 1966 Amendment

    Amendment by Pub. L. 89-809 applicable with respect to calendar year 
1967 and all calendar years thereafter, see section 109(c) of Pub. L. 
89-809, set out as a note under section 2501 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 2101, 2501 of this title.
