Imposition and rate of tax
Imposition
Computation of tax
The tax imposed by this section shall be the amount equal to the excess (if any) of—
a tentative tax computed under subsection (c) on the sum of—
the amount of the taxable estate, and
the amount of the adjusted taxable gifts, over
the aggregate amount of tax which would have been payable under chapter 12 with respect to gifts made by the decedent after
For purposes of paragraph (1)(B), the term “adjusted taxable gifts” means the total amount of the taxable gifts (within the meaning of section 2503) made by the decedent after
Rate schedule
If the amount with respect to which the tentative tax to be computed is: | The tentative tax is: |
|---|---|
Not over $10,000 | 18 percent of such amount. |
Over $10,000 but not over $20,000 | $1,800, plus 20 percent of the excess of such amount over $10,000. |
Over $20,000 but not over $40,000 | $3,800, plus 22 percent of the excess of such amount over $20,000. |
Over $40,000 but not over $60,000 | $8,200 plus 24 percent of the excess of such amount over $40,000. |
Over $60,000 but not over $80,000 | $13,000, plus 26 percent of the excess of such amount over $60,000. |
Over $80,000 but not over $100,000 | $18,200, plus 28 percent of the excess of such amount over $80,000. |
Over $100,000 but not over $150,000 | $23,800, plus 30 percent of the excess of such amount over $100,000. |
Over $150,000 but not over $250,000 | $38,800, plus 32 percent of the excess of such amount over $150,000. |
Over $250,000 but not over $500,000 | $70,800, plus 34 percent of the excess of such amount over $250,000. |
Over $500,000 but not over $750,000 | $155,800, plus 37 percent of the excess of such amount over $500,000. |
Over $750,000 but not over $1,000,000 | $248,300, plus 39 percent of the excess of such amount over $750,000. |
Over $1,000,000 | $345,800, plus 40 percent of the excess of such amount over $1,000,000. |
Adjustment for gift tax paid by spouse
For purposes of subsection (b)(2), if—
the decedent was the donor of any gift one-half of which was considered under section 2513 as made by the decedent’s spouse, and
the amount of such gift is includible in the gross estate of the decedent,
any tax payable by the spouse under chapter 12 on such gift (as determined under section 2012(d)) shall be treated as a tax payable with respect to a gift made by the decedent.
Coordination of sections 2513 and 2035
If—
the decedent’s spouse was the donor of any gift one-half of which was considered under section 2513 as made by the decedent, and
the amount of such gift is includible in the gross estate of the decedent’s spouse by reason of section 2035,
such gift shall not be included in the adjusted taxable gifts of the decedent for purposes of subsection (b)(1)(B), and the aggregate amount determined under subsection (b)(2) shall be reduced by the amount (if any) determined under subsection (d) which was treated as a tax payable by the decedent’s spouse with respect to such gift.
Valuation of gifts
In general
If the time has expired under section 6501 within which a tax may be assessed under chapter 12 (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)); or
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 for purposes of chapter 12.
Final determination
For purposes of paragraph (1), a value shall be treated as finally determined for purposes of chapter 12 if—
the value is shown on a return under such chapter and such value is not contested by the Secretary before the expiration of the time referred to in paragraph (1) with respect to such return;
in a case not described in subparagraph (A), the value is specified by the Secretary and such value is not timely contested by the taxpayer; or
the value is determined by a court or pursuant to a settlement agreement with the Secretary.
For purposes of subparagraph (A), the value of an item shall be treated as shown on a return if the item is disclosed in the return, or in a statement attached to the return, in a manner adequate to apprise the Secretary of the nature of such item.
Modifications to gift tax payable to reflect different tax rates
For purposes of applying subsection (b)(2) with respect to 1 or more gifts, the rates of tax under subsection (c) in effect at the decedent’s death shall, in lieu of the rates of tax in effect at the time of such gifts, be used both to compute—
the tax imposed by chapter 12 with respect to such gifts, and
the credit allowed against such tax under section 2505, including in computing—
the applicable credit amount under section 2505(a)(1), and
the sum of the amounts allowed as a credit for all preceding periods under section 2505(a)(2).
Source
(Aug. 16, 1954, ch. 736, 68A Stat. 373; Pub. L. 94–455, title XX, § 2001(a)(1),Notes
Amendments
Effective Date of 2013 Amendment
In general.—
Except as otherwise provided by in this paragraph, the amendments made by this subsection [amending this section and section 2010 of this title] shall apply to estates of decedents dying, generation-skipping transfers, and gifts made, after
Technical correction.—
The amendment made by paragraph (2) [amending section 2010 of this title] shall take effect as if included in the amendments made by section 303 of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 [Pub. L. 111–312].”
Effective Date of 2010 Amendment
Effective Date of 2001 Amendment
Subsections
and (b).—
The amendments made by subsections (a) and (b) [amending this section] shall apply to estates of decedents dying, and gifts made, after
Subsection (c).—
The amendment made by subsection (c) [amending this section] shall apply to estates of decedents dying, and gifts made, after
Effective Date of 1998 Amendments
Effective Date of 1997 Amendment
Effective Date of 1993 Amendment
Effective Date of 1987 Amendment
Effective Date of 1984 Amendment
Effective Date of 1981 Amendment
Effective Date of 1978 Amendment
Effective Date of 1976 Amendment
Short Title
Special Election With Respect to Estates of Decedents Dying in 2010
Clarification of Treatment of Certain Exemptions for Purposes of Federal Estate and Gift Taxes
General Rule.—
Nothing in any provision of law exempting any property (or interest therein) from taxation shall exempt the transfer of such property (or interest therein) from Federal estate, gift, and generation-skipping transfer taxes. In the case of any provision of law enacted after the date of the enactment of this Act [
Effective Date.—
In general.—
The provisions of subsection (a) shall apply to the estates of decedents dying, gifts made, and transfers made on or after
Treatment of certain transfers treated as taxable.—
The provisions of subsection (a) shall also apply in the case of any transfer of property (or interest therein) if at any time there was filed an estate or gift tax return showing such transfer as subject to Federal estate or gift tax.
No inference.—
No inference shall arise from paragraphs (1) and (2) that any transfer of property (or interest therein) before
Reports With Transfers of Public Housing Bonds
General Rule.—
With respect to transfers of public housing bonds occurring after
Penalty for Failure to Report.—
Any taxpayer failing to provide the information required by subsection (a) shall be liable for a penalty equal to 25 percent of the excess of (1) the estate, gift, or generation-skipping tax that is payable assuming that such transfers are subject to tax, over (2) the tax payable assuming such transfers are not so subject.”