[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: 26CFR25.2521-1]

[Page 592-593]
 
                       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.  25.2521-1  Specific exemption.

    (a) In determining the amount of taxable gifts for the calendar 
quarter (calendar year with respect to gifts made before January 1, 
1971) there may be deducted, if the donor was a resident or citizen of 
the United States at the time the gifts were made, a specific exemption 
of $30,000, less the sum of the amounts claimed and allowed as an 
exemption in prior calendar quarters or calendar years. The exemption, 
at the option of the donor, may be taken in the full amount of $30,000 
in a single calendar quarter or calendar year, or be spread over a 
period of time in such amounts as the donor sees fit, but after the 
limit has been reached no further exemption is allowable. Except as 
otherwise provided in a tax convention between the United States and 
another country, a donor who was a nonresident not a citizen of the 
United States at the time the gift or gifts were made is not entitled to 
this exemption. For the definition of calendar quarter see Sec.  
25.2502-1(c)(1).
    (b) No part of a donor's lifetime specific exemption of $30,000 may 
be deducted from the value of a gift attributable to his spouse where a 
husband and wife consent, under the provisions of section 2513, to have 
the gifts made during a calendar quarter or calendar year considered as 
made one-half by each of them. The ``gift-splitting'' provisions of 
section 2513 do not authorize the filing of a joint gift tax return nor 
permit a donor to claim any of his spouse's specific exemption. For 
example, if a husband has no specific exemption remaining available, but 
his wife does, and the husband makes a gift to which his wife consents 
under the provisions of section 2513, the specific exemption remaining 
available may be claimed only on the return of the wife with respect to 
one-half of the gift. The husband may not claim any specific exemption 
since he has none available.
    (c)(1) With respect to gifts made after December 31, 1970, the 
amount by

[[Page 593]]

which the specific exemption claimed and allowed in gift tax returns for 
prior calendar quarters and calendar years exceeds $30,000 is includible 
in determining the aggregate sum of the taxable gifts for preceding 
calendar years and calendar quarters. See paragraph (b) of Sec.  
25.2504-1.
    (2) With respect to gifts made before January 1, 1971, the amount by 
which the specific exemption claimed and allowed in gift tax returns for 
prior calendar years exceeds $30,000 is includible in determining the 
aggregate sum of the taxable gifts for preceding calendar years. See 
paragraph (b) of Sec.  25.2504-1.

[T.D. 7238, 37 FR 28732, Dec. 29, 1972]