§ 2503. Taxable gifts
(a)
General definition
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)
Exclusions from gifts
(1)
In general
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)
Inflation adjustment
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—
(B)
the cost-of-living adjustment determined under section
1
(f)(3) for such calendar year by substituting “calendar year 1997” for “calendar year 1992” in subparagraph (B) thereof.
If any amount as adjusted under the preceding sentence is not a multiple of $1,000, such amount shall be rounded to the next lowest multiple of $1,000.
(c)
Transfer for the benefit of minor
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
(e)
Exclusion for certain transfers for educational expenses or medical expenses
(1)
In general
Any qualified transfer shall not be treated as a transfer of property by gift for purposes of this chapter.
(2)
Qualified transfer
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
(g)
Treatment of certain loans of artworks
(1)
In general
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.