26 USC 2801 - Imposition of tax

U.S Code last checked for updates: Apr 29, 2024

§ 2801.

Imposition of tax

(a)

In general

If, during any calendar year, any United States citizen or resident receives any covered gift or bequest, there is hereby imposed a tax equal to the product of—

(1)

the highest rate of tax specified in the table contained in section 2001(c) as in effect on the date of such receipt, and

(2)

the value of such covered gift or bequest.

(b)

Tax to be paid by recipient

(c)

Exception for certain gifts

(d)

Tax reduced by foreign gift or estate tax

(e)

Covered gift or bequest

(1)

In general

For purposes of this chapter, the term “covered gift or bequest” means—

(A)

any property acquired by gift directly or indirectly from an individual who, at the time of such acquisition, is a covered expatriate, and

(B)

any property acquired directly or indirectly by reason of the death of an individual who, immediately before such death, was a covered expatriate.

(2)

Exceptions for transfers otherwise subject to estate or gift tax

Such term shall not include—

(A)

any property shown on a timely filed return of tax imposed by chapter 12 which is a taxable gift by the covered expatriate, and

(B)

any property included in the gross estate of the covered expatriate for purposes of chapter 11 and shown on a timely filed return of tax imposed by chapter 11 of the estate of the covered expatriate.

(3)

Exceptions for transfers to spouse or charity

(4)

Transfers in trust

(A)

Domestic trusts

In the case of a covered gift or bequest made to a domestic trust—

(i)

subsection (a) shall apply in the same manner as if such trust were a United States citizen, and

(ii)

the tax imposed by subsection (a) on such gift or bequest shall be paid by such trust.

(B)

Foreign trusts

(i)

In general

(ii)

Deduction for tax paid by recipient

(iii)

Election to be treated as domestic trust

(f)

Covered expatriate

(Added Pub. L. 110–245, title III, § 301(b)(1), June 17, 2008, 122 Stat. 1644; amended Pub. L. 113–295, div. A, title II, § 206(b)(1), Dec. 19, 2014, 128 Stat. 4027.)

cite as: 26 USC 2801