Page:United States Statutes at Large Volume 68A.djvu/446

 406

INTERNAL REVENUE CODE OF 1954

Subchapter B—Transfers Sec. Sec. Sec. Sec. Sec. Sec.

2511. 2512. 2513. 2514, 2515. 2516.

Transfers in general. Valuation of gifts. .' Gift by husband or wife to third party Powers of appointment. Tenancies by the entirety. Certain property settlements.

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SEC. 2511. TRANSFERS IN GENERAL.

(a) SCOPE.—Subject to the limitations contained in this chapter, the tax imposed by section 2501 shall apply whether the transfer is in trust or otherwise, whether the gift is direct or indirect, and whether the property is real or personal, tangible or intangible; but in the case of a nonresident not a citizen of the United States, shall apply to a transfer only if the property is situated within the United States. (b) STOCK IN CORPORATION.—Shares of stock owned and held by a nonresident not a citizen of the United States shall be deemed property within the United States only if issued by a domestic corporation. SEC. 2512. VALUATION OF GIFTS.

(a) If the gift is made in property, the value thereof at the date of the gift shall be considered the amount of the gift. (b) 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 be deemed a gift, and shall be included in computing the amount of gifts made during the calendar year. SEC. 2513. GIFT BY HUSBAND OR WIFE TO THIRD PARTY. (a) CONSIDERED AS M A D E O N E - H A L F BY E A C H. —

(1) IN GENERAL.—A gift made by one spouse to any person other than his spouse shall, for the purposes of this chapter, be considered as made one-half by him and one-half by his spouse, but only if at the time of the gift each spouse is a citizen or resident of the United States. This paragraph shall not apply with respect to a gift by a spouse of an interest in property if he creates in his spouse a general power of appointment, as defined in section 2514(c), over such interest. For purposes of this section, an individual shall be considered as the spouse of another individual only if he is married to such individual at the time of the gift and does not remarry during the remainder of the calendar year. (2) CONSENT OF BOTH SPOUSES.—Paragraph (1) shall apply only if both spouses have signified (under the regulations provided for in subsection (b)) their consent to the application of paragraph (1) in the case of all such gifts made during the calendar year by either while married to the other. (b) M A N N E R AND T I M E OF SIGNIFYING CONSENT.—

(1) M A N N E R. — A consent under this section shall be signified in such manner as is provided under regulations prescribed by the Secretary or his delegate. §2511

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