[Code of Federal Regulations]
[Title 26, Volume 14]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR25.0-1]

[Page 518-519]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 25_GIFT TAX; GIFTS MADE AFTER DECEMBER 31, 1954--Table of Contents
 
Sec.  25.0-1  Introduction.

    (a) In general. (1) The regulations in this part are designated 
``Gift Tax Regulations.'' These regulations pertain to (i) the gift tax 
imposed by Chapter 12 of Subtitle B of the Internal Revenue Code on the 
transfer of property by gift by individuals in the calendar year 1955, 
in subsequent calendar years beginning before the calendar year 1971, in 
calendar quarters beginning with the first calendar quarter of calendar 
year 1971 through the last calendar quarter of the calendar year 1981, 
and in calendar years beginning with the calendar year 1982, and (ii) 
certain related administrative provisions of Subtitle F of the Code. It 
should be noted that the application of some of the provisions of these 
regulations may be affected by the provisions of an applicable gift tax 
convention with a foreign country. Unless otherwise indicated, 
references in these regulations to the ``Internal Revenue Code'' or the 
``Code'' are references to the Internal Revenue Code of 1954, as 
amended, and references to a section or other provision of law are 
references to a section or other provision of the Internal Revenue Code 
of 1954, as amended. The Gift Tax Regulations are applicable to the 
transfer of property by gift by individuals in calendar years 1955 
through 1970, in calendar quarters beginning with the first calendar 
quarter of calendar year 1971 through the last calendar quarter of the 
calendar year 1981, and in calendar years beginning with the calendar 
year 1982, and supersede the regulations contained in part 86, 
subchapter B, Chapter 1, Title 26, Code of Federal Regulations (1939) 
(Regulations 108, Gift Tax (8 FR 10858)), as prescribed and made 
applicable to the Internal Revenue Code of 1954 by Treasury Decision 
6091, signed August 16, 1954 (19 FR 5167, Aug. 17, 1954).
    (2) Section 2501(b) makes the provisions of Chapter 12 of the Code 
apply in the case of gifts made after September 2, 1958, by certain 
citizens of the United States who were residents of a possession thereof 
at the time the gifts were made. Section 2501(c) makes the provisions of 
Chapter 12 apply in the case of gifts made after September 14, 1960, by 
certain other citizens of the United States who were residents of a 
possession thereof at the time the gifts were made. See paragraphs (c) 
and (d) of Sec.  25.2501-1. Except as otherwise provided in paragraphs 
(c) and (d) of Sec.  25.2501-1, the provisions of these regulations do 
not apply to the making of gifts by such citizens.
    (b) Nature of tax. The gift tax is not a property tax. It is a tax 
imposed upon the transfer of property by individuals. It is not 
applicable to transfers by corporations or persons other than 
individuals. However, see paragraph (h)(1) of Sec.  25.2511-1 with 
respect to the extent to which a transfer by or to a corporation is 
considered a transfer by or to its shareholders.
    (c) Scope of regulations--(1) Determination of tax liability. 
subchapter A of Chapter 12 of the Code pertains to the

[[Page 519]]

determination of tax liability. The regulations pursuant to subchapter A 
are set forth in Sec. Sec.  25.2501-1 through 25.2504-2. Sections 
25.2701-5 and 25.2702-6 contain rules that provide additional 
adjustments to mitigate double taxation where the amount of the 
transferor's property was previously determined under the special 
valuation provisions of sections 2701 and 2702.

    (2) Transfer. Subchapter B of chapter 12 and chapter 14 of the 
Internal Revenue Code pertain to the transfers which constitute the 
making of gifts and the valuation of those transfers. The regulations 
pursuant to subchapter B are set forth in Sec. Sec.  25.2511-1 through 
25.2518-3. The regulations pursuant to chapter 14 are set forth in 
Sec. Sec.  25.2701-1 through 25.2704-3.

    (3) Deductions. Subchapter C of Chapter 12 of the Code pertains to 
the deductions which are allowed in determining the amount of taxable 
gifts. The regulations pursuant to Subchapter C are set forth in 
Sec. Sec.  25.2521-1 through 25.2524-1.

    (4) Procedure and administration provisions. Subtitle F of the 
Internal Revenue Code contains some sections which are applicable to the 
gift tax. The regulations pursuant to those sections are set forth in 
Sec. Sec.  25.6001-1 through 25.7101-1. Such regulations do not purport 
to be all the regulations on procedure and administration which are 
pertinent to gift tax matters. For the remainder of the regulations on 
procedure and administration which are pertinent to gift tax matters, 
see part 301 of this chapter (Regulations on Procedure and 
Administration).

    (d) Arrangement and numbering. Each section of the regulations in 
this part (other than this section) is designated by a number composed 
of the part number followed by a decimal point (25.); the section of the 
Internal Revenue Code which it interprets; a hyphen (-); and a number 
identifying this section. By use of these designations one can ascertain 
the sections of the regulations relating to a provision of the Code. For 
example, the regulations pertaining to section 2521 of the Code are 
designated Sec.  25.2521-1.

[T.D. 6334, 23 FR 8904, Nov. 15, 1958, as amended by T.D. 6542, 26 FR 
548, Jan. 20, 1961; 45 FR 6089, Jan. 25, 1980; T.D. 7910, 48 FR 40372, 
Sept. 7, 1983; T.D. 8395, 57 FR 4254, Feb. 4, 1992]

                     Determination of Tax Liability