U.S Code last checked for updates: May 02, 2024
§ 1015.
Basis of property acquired by gifts and transfers in trust
(a)
Gifts after December 31, 1920
(b)
Transfer in trust after December 31, 1920
(c)
Gift or transfer in trust before January 1, 1921
(d)
Increased basis for gift tax paid
(1)
In general
If—
(A)
the property is acquired by gift on or after September 2, 1958, the basis shall be the basis determined under subsection (a), increased (but not above the fair market value of the property at the time of the gift) by the amount of gift tax paid with respect to such gift, or
(B)
the property was acquired by gift before September 2, 1958, and has not been sold, exchanged, or otherwise disposed of before such date, the basis of the property shall be increased on such date by the amount of gift tax paid with respect to such gift, but such increase shall not exceed an amount equal to the amount by which the fair market value of the property at the time of the gift exceeded the basis of the property in the hands of the donor at the time of the gift.
(2)
Amount of tax paid with respect to gift
(3)
Gifts treated as made one-half by each spouse
(4)
Treatment as adjustment to basis
(5)
Application to gifts before 1955
(6)
Special rule for gifts made after December 31, 1976
(A)
In general
In the case of any gift made after December 31, 1976, the increase in basis provided by this subsection with respect to any gift for the gift tax paid under chapter 12 shall be an amount (not in excess of the amount of tax so paid) which bears the same ratio to the amount of tax so paid as—
(i)
the net appreciation in value of the gift, bears to
(ii)
the amount of the gift.
(B)
Net appreciation
(e)
Gifts between spouses
(Aug. 16, 1954, ch. 736, 68A Stat. 298; Pub. L. 85–866, title I, § 43(a), Sept. 2, 1958, 72 Stat. 1640; Pub. L. 91–614, title I, § 102(d)(1), Dec. 31, 1970, 84 Stat. 1841; Pub. L. 94–455, title XIX, §§ 1901(a)(122), 1906(b) (13)(A), title XX, § 2005(c), Oct. 4, 1976, 90 Stat. 1784, 1834, 1877; Pub. L. 97–34, title IV, § 442(d)(1), Aug. 13, 1981, 95 Stat. 322; Pub. L. 98–369, div. A, title IV, § 421(b)(5), July 18, 1984, 98 Stat. 794.)
cite as: 26 USC 1015