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Code · U.S. Code · Title 26 - INTERNAL REVENUE CODE · CHAPTER 12— GIFT TAX · Subchapter A— Determination of Tax Liability · § 2505

§ 2505. Unified credit against gift tax

1,147 words·~5 min read·/usc/title-26/section-2505

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)General rule In the case of a citizen or resident of the United States, there shall be allowed as a credit against the tax imposed by section 2501 for each calendar year an amount equal to—
(1)the applicable credit amount in effect under section 2010(c) which would apply if the donor died as of the end of the calendar year, reduced by
(2)the sum of the amounts allowable as a credit to the individual under this section for all preceding calendar periods.
For purposes of applying paragraph
(2)for any calendar year, the rates of tax in effect under section 2502(a)(2) for such calendar year shall, in lieu of the rates of tax in effect for preceding calendar periods, be used in determining the amounts allowable as a credit under this section for all preceding calendar periods.
(b)Adjustment to credit for certain gifts made before 1977 The amount allowable under subsection
(a)shall be reduced by an amount equal to 20 percent of the aggregate amount allowed as a specific exemption under section 2521 (as in effect before its repeal by the Tax Reform Act of 1976) with respect to gifts made by the individual after September 8, 1976.
(c)Limitation based on amount of tax The amount of the credit allowed under subsection
(a)for any calendar year shall not exceed the amount of the tax imposed by section 2501 for such calendar year.
(Added Pub. L. 94–455, title XX, § 2001(b)(2), Oct. 4, 1976, 90 Stat. 1849; amended Pub. L. 97–34, title IV, §§ 401(b), 442(a)(5), Aug. 13, 1981, 95 Stat. 299, 321; Pub. L. 101–508, title XI, § 11801(a)(40), (c)(19)(B), Nov. 5, 1990, 104 Stat. 1388–521, 1388–528; Pub. L. 105–34, title V, § 501(a)(2), Aug. 5, 1997, 111 Stat. 845; Pub. L. 107–16, title V, § 521(b), June 7, 2001, 115 Stat. 71; Pub. L. 111–312, title III, §§ 301(b), 302(b)(1)(A), (d)(2), 303(b)(1), Dec. 17, 2010, 124 Stat. 3300–3303.)
Connections9 cite this · traces to 5
44 references not yet in our index
  • Pub. L. 94–455, title XX, § 2001(b)(2)
  • 90 Stat. 1849
  • Pub. L. 97–34, title IV
  • 95 Stat. 299
  • Pub. L. 101–508, title XI, § 11801(a)(40)
  • 104 Stat. 1388–521
  • Pub. L. 105–34, title V, § 501(a)(2)
  • 111 Stat. 845
  • Pub. L. 107–16, title V, § 521(b)
  • 115 Stat. 71
  • Pub. L. 111–312, title III
  • 124 Stat. 3300–3303
  • Pub. L. 94–455
  • 90 Stat. 1520
  • section 2001(b)(3) of Pub. L. 94–455
  • Pub. L. 111–312, § 302(d)(2)
  • Pub. L. 111–312, § 303(b)(1)
  • Pub. L. 111–312, § 302(b)(1)(A)
  • Pub. L. 111–312, § 301(b)
  • Pub. L. 107–16, § 521(b)(2)
  • Pub. L. 107–16, § 521(b)(1)
  • Pub. L. 105–34
  • Pub. L. 101–508
  • Pub. L. 97–34, § 442(a)(5)(A)
  • Pub. L. 97–34, § 401(b)(1)
  • Pub. L. 97–34, § 401(b)(2)
  • Pub. L. 97–34, § 442(a)(5)(B)
  • Pub. L. 111–312, title III, § 301(b)
  • 124 Stat. 3300
  • Pub. L. 111–312, title III, § 302(b)(1)(B)
  • 124 Stat. 3301
  • section 302(d)(2) of Pub. L. 111–312
  • section 302(f) of Pub. L. 111–312
  • section 303(b)(1) of Pub. L. 111–312
  • section 303(c)(1) of Pub. L. 111–312
  • section 521(b)(1) of Pub. L. 107–16
  • section 521(b)(2) of Pub. L. 107–16
  • Pub. L. 107–16
  • section 501(f) of Pub. L. 105–34
  • Pub. L. 97–34, title IV, § 401(c)(2)
+ 4 more
Citation graph
cites case law
§ 2505
Unified credit against gift tax
Stat.×7
U.S.C.×2
Pub. L.Pub. L. 94–455, title XX, § 2001(b)(2)
Stat.90 Stat. 1849
Pub. L.Pub. L. 97–34, title IV
Stat.95 Stat. 299
Pub. L.Pub. L. 101–508, title XI, § 11801(a)(40)
Cites 49 · showing 10Cited by 9 across 2 sources
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