[Code of Federal Regulations] [Title 26, Volume 14] [Revised as of January 1, 2007] From the U.S. Government Printing Office via GPO Access [CITE: 26CFR25.0-1] [Page 506-509] TITLE 26--INTERNAL REVENUE CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY (CONTINUED) PART 25_GIFT TAX; GIFTS MADE AFTER DECEMBER 31, 1954--Table of Contents Sec. 25.0-1 Introduction. Gift Tax Sec. 25.0-1 Introduction. Determination of Tax Liability 25.2207A-1 Right of recovery of gift taxes in the case of certain marital deduction property. 25.2207A-2 Effective date. 25.2501-1 Imposition of tax. 25.2502-1 Rate of tax. 25.2502-2 Donor primarily liable for tax. 25.2503-1 General definitions of ``taxable gifts'' and of ``total amount of gifts.'' 25.2503-2 Exclusions from gifts. 25.2503-3 Future interests in property. 25.2503-4 Transfer for the benefit of a minor. 25.2503-6 Exclusion for certain qualified transfer for tuition or medical expenses. 25.2504-1 Taxable gifts for preceding calendar periods. 25.2504-2 Determination of gifts for preceding calendar periods. Transfers 25.2511-1 Transfers in general. 25.2511-2 Cessation of donor's dominion and control. 25.2511-3 Transfers by nonresidents not citizens. 25.2512-0 Table of contents. 25.2512-1 Valuation of property; in general. 25.2512-2 Stocks and bonds. 25.2512-3 Valuation of interest in businesses. 25.2512-4 Valuation of notes. 25.2512-5 Valuation of annuities, unitrust interests, interests for life or term of years, and remainder or reversionary interests. 25.2512-6 Valuation of certain life insurance and annuity contracts; valuation of shares in an open-end investment company. 25.2512-7 Effect of excise tax. 25.2512-8 Transfers for insufficient consideration. 25.2513-1 Gifts by husband or wife to third party considered as made one-half by each. 25.2513-2 Manner and time of signifying consent. 25.2513-3 Revocation of consent. 25.2513-4 Joint and several liability for tax. 25.2514-1 Transfers under power of appointment. 25.2514-2 Powers of appointment created on or before October 21, 1942. 25.2514-3 Powers of appointment created after October 21, 1942. 25.2515-1 Tenancies by the entirety; in general. 25.2515-2 Tenancies by the entirety; transfers treated as gifts; manner of election and valuation. 25.2515-3 Termination of tenancy by the entirety; cases in which entire value of gift is determined under section 2515(b). 25.2515-4 Termination of tenancy by entirety; cases in which none, or a portion only, of value of gift is determined under section 2515(b). 25.2516-1 Certain property settlements. 25.2516-2 Transfers in settlement of support obligations. 25.2518-1 Qualified disclaimers of property; in general. 25.2518-2 Requirements for a qualified disclaimer. [[Page 507]] 25.2518-3 Disclaimer of less than an entire interest. Actuarial Tables Applicable Before May 1, 1999 25.2512-5A Valuation of annuities, unitrust interests, interests for life or term of years, and remainder or reversionary interests transferred before May 1, 1999. Deductions 25.2519-1 Dispositions of certain life estates. 25.2519-2 Effective date. 25.2521-1 Specific exemption. 25.2522(a)-1 Charitable and similar gifts; citizens or residents. 25.2522(a)-2 Transfers not exclusively for charitable, etc., purposes in the case of gifts made before August 1, 1969. 25.2522(b)-1 Charitable and similar gifts; nonresidents not citizens. 25.2522(c)-1 Disallowance of charitable, etc., deductions because of ``prohibited transactions'' in the case of gifts made before January 1, 1970. 25.2522(c)-2 Disallowance of charitable, etc., deductions in the case of gifts made after December 31, 1969. 25.2522(c)-3 Transfers not exclusively for charitable, etc., purposes in the case of gifts made after July 31, 1969. 25.2522(c)-4 Disallowance of double deduction in the case of qualified terminable interest property. 25.2522(d)-1 Additional cross references. 25.2523(a)-1 Gift to spouse; in general. 25.2523(b)-1 Life estate or other terminable interest. 25.2523(c)-1 Interest in unidentified assets. 25.2523(d)-1 Joint interests. 25.2523(e)-1 Marital deduction; life estate with power of appointment in donee spouse. 25.2523(f)-1 Election with respect to life estate transferred to donee spouse. 25.2523(g)-1 Special rule for charitable remainder trusts. 25.2523(h)-1 Denial of double deduction. 25.2523(h)-2 Effective dates. 25.2523(i)-1 Disallowance of marital deduction when spouse is not a United States citizen. 25.2523(i)-2 Treatment of spousal joint tenancy property where one spouse is not a United States citizen. 25.2523(i)-3 Effective date. 25.2524-1 Extent of deductions. Deductions Prior to 1982 25.2523(f)-1A Special rule applicable to community property transferred prior to January 1, 1982. Special Valuation Rules 25.2701-0 Table of contents. 25.2701-1 Special valuation rules in the case of transfers of certain interests in corporations and partnerships. 25.2701-2 Special valuation rules for applicable retained interests. 25.2701-3 Determination of amount of gift. 25.2701-4 Accumulated qualified payments. 25.2701-5 Adjustments to mitigate double taxation. 25.2701-6 Indirect holding of interests. 25.2701-7 Separate interests. 25.2701-8 Effective dates. 25.2702-0 Table of contents. 25.2702-1 Special valuation rules in the case of transfers of interests in trust. 25.2702-2 Definitions and valuation rules. 25.2702-3 Qualified interests. 25.2702-4 Certain property treated as held in trust. 25.2702-5 Personal residence trusts. 25.2702-6 Reduction in taxable gifts. 25.2702-7 Effective dates. 25.2703-1 Property subject to restrictive arrangements. 25.2703-2 Effective date. 25.2704-1 Lapse of certain rights. 25.2704-2 Transfers subject to applicable restrictions. 25.2704-3 Effective date. Procedure and Administration 25.6001-1 Records required to be kept. 25.6011-1 General requirement of return, statement, or list. 25.6011-4 Requirement of statement disclosing participation in certain transactions by taxpayers. 25.6019-1 Persons required to file returns. 25.6019-2 Returns required in case of consent under section 2513. 25.6019-3 Contents of return. 25.6019-4 Description of property listed on return. 25.6061-1 Signing of returns and other documents. 25.6065-1 Verification of returns. 25.6075-1 Returns; time for filing gift tax returns for gifts made after December 31, 1981. 25.6075-2 Returns; time for filing gift tax returns for gifts made after December 31, 1976, and before January 1, 1982. 25.6081-1T Automatic extension of time for filing gift tax returns (temporary). 25.6091-1 Place for filing returns and other documents. 25.6091-2 Exceptional cases. 25.6151-1 Time and place for paying tax shown on return. 25.6161-1 Extension of time for paying tax or deficiency. 25.6165-1 Bonds where time to pay tax or deficiency has been extended. 25.6302-1 Voluntary payments of gift taxes by electronic funds transfer. 25.6321-1 Lien for taxes. [[Page 508]] 25.6323-1 Validity and priority against certain persons. 25.6324-1 Special lien for gift tax. 25.6601-1 Interest on underpayment, nonpayment, or extensions of time for payment, of tax. 25.6905-1 Discharge of executor from personal liability for decedent's income and gift taxes. 25.7101-1 Form of bonds. General Actuarial Valuations 25.7520-1 Valuation of annuities, unitrust interests, interests for life or term of years, and remainder or reversionary interests. 25.7520-2 Valuation of charitable interests. 25.7520-3 Limitation on the application of section 7520. 25.7520-4 Transitional rules. Authority: 26 U.S.C. 7805. Section 25.2512-5 also issued under 26 U.S.C. 7520(c)(2). Section 25.2512-5A also issued under 26 U.S.C. 7520(c)(2). Section 25.2518-2 is also issued under 26 U.S.C. 2518(b). Section 25.6081-1T also issued under the authority of 26 U.S.C. 6081(a). Section 25.6302-1 also issued under 26 U.S.C. 6302(a) and (h). Section 25.7520-1 also issued under 26 U.S.C. 7520(c)(2). Section 25.7520-2 also issued under 26 U.S.C. 7520(c)(2). Section 25.7520-3 also issued under 26 U.S.C. 7520(c)(2). Section 25.7520-4 also issued under 26 U.S.C. 7520(c)(2). Source: T.D. 6334, 23 FR 8904, Nov. 15, 1958; 25 FR 14021, Dec. 31, 1960, unless otherwise noted. Gift Tax (a) In general. (1) The regulations in this part are designated ``Gift Tax Regulations.'' These regulations pertain to (i) the gift tax imposed by Chapter 12 of Subtitle B of the Internal Revenue Code on the transfer of property by gift by individuals in the calendar year 1955, in subsequent calendar years beginning before the calendar year 1971, in calendar quarters beginning with the first calendar quarter of calendar year 1971 through the last calendar quarter of the calendar year 1981, and in calendar years beginning with the calendar year 1982, and (ii) certain related administrative provisions of Subtitle F of the Code. It should be noted that the application of some of the provisions of these regulations may be affected by the provisions of an applicable gift tax convention with a foreign country. Unless otherwise indicated, references in these regulations to the ``Internal Revenue Code'' or the ``Code'' are references to the Internal Revenue Code of 1954, as amended, and references to a section or other provision of law are references to a section or other provision of the Internal Revenue Code of 1954, as amended. The Gift Tax Regulations are applicable to the transfer of property by gift by individuals in calendar years 1955 through 1970, in calendar quarters beginning with the first calendar quarter of calendar year 1971 through the last calendar quarter of the calendar year 1981, and in calendar years beginning with the calendar year 1982, and supersede the regulations contained in part 86, subchapter B, Chapter 1, Title 26, Code of Federal Regulations (1939) (Regulations 108, Gift Tax (8 FR 10858)), as prescribed and made applicable to the Internal Revenue Code of 1954 by Treasury Decision 6091, signed August 16, 1954 (19 FR 5167, Aug. 17, 1954). (2) Section 2501(b) makes the provisions of Chapter 12 of the Code apply in the case of gifts made after September 2, 1958, by certain citizens of the United States who were residents of a possession thereof at the time the gifts were made. Section 2501(c) makes the provisions of Chapter 12 apply in the case of gifts made after September 14, 1960, by certain other citizens of the United States who were residents of a possession thereof at the time the gifts were made. See paragraphs (c) and (d) of Sec. 25.2501-1. Except as otherwise provided in paragraphs (c) and (d) of Sec. 25.2501-1, the provisions of these regulations do not apply to the making of gifts by such citizens. (b) Nature of tax. The gift tax is not a property tax. It is a tax imposed upon the transfer of property by individuals. It is not applicable to transfers by corporations or persons other than individuals. However, see paragraph (h)(1) of Sec. 25.2511-1 with respect to the extent to which a transfer by or to a corporation is considered a transfer by or to its shareholders. [[Page 509]] (c) Scope of regulations--(1) Determination of tax liability. subchapter A of Chapter 12 of the Code pertains to the determination of tax liability. The regulations pursuant to subchapter A are set forth in Sec. Sec. 25.2501-1 through 25.2504-2. Sections 25.2701-5 and 25.2702-6 contain rules that provide additional adjustments to mitigate double taxation where the amount of the transferor's property was previously determined under the special valuation provisions of sections 2701 and 2702. (2) Transfer. Subchapter B of chapter 12 and chapter 14 of the Internal Revenue Code pertain to the transfers which constitute the making of gifts and the valuation of those transfers. The regulations pursuant to subchapter B are set forth in Sec. Sec. 25.2511-1 through 25.2518-3. The regulations pursuant to chapter 14 are set forth in Sec. Sec. 25.2701-1 through 25.2704-3. (3) Deductions. Subchapter C of Chapter 12 of the Code pertains to the deductions which are allowed in determining the amount of taxable gifts. The regulations pursuant to Subchapter C are set forth in Sec. Sec. 25.2521-1 through 25.2524-1. (4) Procedure and administration provisions. Subtitle F of the Internal Revenue Code contains some sections which are applicable to the gift tax. The regulations pursuant to those sections are set forth in Sec. Sec. 25.6001-1 through 25.7101-1. Such regulations do not purport to be all the regulations on procedure and administration which are pertinent to gift tax matters. For the remainder of the regulations on procedure and administration which are pertinent to gift tax matters, see part 301 of this chapter (Regulations on Procedure and Administration). (d) Arrangement and numbering. Each section of the regulations in this part (other than this section) is designated by a number composed of the part number followed by a decimal point (25.); the section of the Internal Revenue Code which it interprets; a hyphen (-); and a number identifying this section. By use of these designations one can ascertain the sections of the regulations relating to a provision of the Code. For example, the regulations pertaining to section 2521 of the Code are designated Sec. 25.2521-1. [T.D. 6334, 23 FR 8904, Nov. 15, 1958, as amended by T.D. 6542, 26 FR 548, Jan. 20, 1961; 45 FR 6089, Jan. 25, 1980; T.D. 7910, 48 FR 40372, Sept. 7, 1983; T.D. 8395, 57 FR 4254, Feb. 4, 1992] Determination of Tax Liability