§ 2503. Taxable gifts

• (a) The term “taxable gifts” means the total amount of gifts made during the calendar year, less the deductions provided in subchapter C (section 2522 and following).
• (b)
  • (1) In the case of gifts (other than gifts of future interests in property) made to any person by the donor during the calendar year, the first $10,000 of such gifts to such person shall not, for purposes of subsection (a), be included in the total amount of gifts made during such year. Where there has been a transfer to any person of a present interest in property, the possibility that such interest may be diminished by the exercise of a power shall be disregarded in applying this subsection, if no part of such interest will at any time pass to any other person.
  • (2) In the case of gifts made in a calendar year after 1998, the $10,000 amount contained in paragraph (1) shall be increased by an amount equal to—
    • (A) $10,000, multiplied by
    • (B) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting “calendar year 1997” for “calendar year 2016” in subparagraph (A)(ii) thereof.
• (c) No part of a gift to an individual who has not attained the age of 21 years on the date of such transfer shall be considered a gift of a future interest in property for purposes of subsection (b) if the property and the income therefrom—
  • (1) may be expended by, or for the benefit of, the donee before his attaining the age of 21 years, and
  • (2) will to the extent not so expended—
    • (A) pass to the donee on his attaining the age of 21 years, and
    • (B) in the event the donee dies before attaining the age of 21 years, be payable to the estate of the donee or as he may appoint under a general power of appointment as defined in section 2514(c).
• [(d)
• (e)
  • (1) Any qualified transfer shall not be treated as a transfer of property by gift for purposes of this chapter.
  • (2) For purposes of this subsection, the term “qualified transfer” means any amount paid on behalf of an individual—
    • (A) as tuition to an educational organization described in section 170(b)(1)(A)(ii) for the education or training of such individual, or
    • (B) to any person who provides medical care (as defined in section 213(d)) with respect to such individual as payment for such medical care.
• (f) If any individual waives, before the death of a participant, any survivor benefit, or right to such benefit, under section 401(a)(11) or 417, such waiver shall not be treated as a transfer of property by gift for purposes of this chapter.
• (g)
  • (1) For purposes of this subtitle, any loan of a qualified work of art shall not be treated as a transfer (and the value of such qualified work of art shall be determined as if such loan had not been made) if—
    • (A) such loan is to an organization described in section 501(c)(3) and exempt from tax under section 501(c) (other than a private foundation), and
    • (B) the use of such work by such organization is related to the purpose or function constituting the basis for its exemption under section 501.
  • (2) For purposes of this section—
    • (A) The term “qualified work of art” means any archaeological, historic, or creative tangible personal property.
    • (B) The term “private foundation” has the meaning given such term by section 509, except that such term shall not include any private operating foundation (as defined in section 4942(j)(3)).