Page:United States Statutes at Large Volume 53 Part 1.djvu/158

 CODIFICATION OF INTERNAL REVENUE LAWS $1.861,950 upon net gifts of $6,000,000; and upon net gifts in excess of $6,000,000 and not in excess of $7,000,000, 441/4 per centum in addition of such excess. $2,304,450 upon net gifts of $7,000,000; and upon net gifts in excess of $7,000,000 and not in excess of $8,000,000, 453/4 per centum in addition of such excess. $2,761,950 upon net gifts of $8,000,000; and upon net gifts in excess of $8,000,000 and not in excess of $9,000,000, 471/ per centum in addition of such excess. $3,234,450 upon net gifts of $9,000,000; and upon net gifts in excess of $9,000,000 and not in excess of $10,000,000, 483/4 per centum in addition of such excess. $3,721,950 upon net gifts of $10,000,000; and upon net gifts in ex- cess of $10,000,000 and not in excess of $20,000,000, 501/4 per centum in addition of such excess. $8,746,950 upon net gifts of $20,000,000; and upon net gifts in ex- cess of $20,000,000 and not in excess of $50,000,000, 513/ per centum in addition of such excess. $24,271,950 upon net gifts of $50,000,000; and upon net gifts in ex- cess of $50,000,000, 521/2 per centum in addition of such excess. (b) For the purpose of this section the term "preceding calendar years" means the calendar year 1932 and all calendar years inter- vening between the calendar year 1932 and the calendar year for which the tax is being computed. (c) CROSS REFERENCE. - For definition of "calendar year", see section 1030 (a). SEC. 1002. TRANSFER FOR LESS THAN ADEQUATE AND FULL CONSID- ERATION. Where property is transferred for less than an adequate and full consideration in money or money's worth, then the amount by which the value of the property exceeded the value of the consideration shall, for the purpose of the tax imposed by this chapter, be deemed a gift, and shall be included in computing the amount of gifts made during the calendar year. SEC. 1003. NET GIFTS. (a) GENERAL DEFINITION. -Thle term "net gifts" means the total amouint of gifts made during the calendar year, less the deductions provided in section 1004. (b) EXCLUSIONS 'FROMGIFTS. (1) (IFTS PIIOR TO ji):).-- In the case of gifts (other than of future interests in property) made to any person by the donor during the calendar year 1938 and previous calendar years, the first $5.000 of such gifts to such person shall not, for the purposes of subsection (a), be included in the total amount of gifts made during such year. (2) GIFTS AFTER 19.3s.-In the case of gifts (other than gifts in trust or of future interests in property) made to any person by the donor during the calendar year 1939 and subsequent calendar years, the first $4.000 of such gifts to such person shall not, for the purposes of subsection (a), be included in the total amount of gifts made during such year. SEC. 1004. DEDUCTIONS. In computing net gifts for the calendar year 1939 and preceding calendar years, there shall be allowed (except as otherwise provided in paragraph (1) of subsection (a)) such deductions as are pro- vided for under the gift tax laws applicable to the years in which the gifts were made. In computing net gifts for the calendar year 1940 and subsequent calendar years, there shall be allowed as deductions: 146

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