I.R.C. § 2522(a) Citizens Or Residents —
In computing taxable gifts for the calendar year, there shall be allowed as a deduction
in the case of a citizen or resident the amount of all gifts made during such year
to or for the use of—
I.R.C. § 2522(a)(1) —
the United States, any State, or any political subdivision thereof, or the District
of Columbia, for exclusively public purposes;
I.R.C. § 2522(a)(2) —
a corporation, or trust, or community chest, fund, or foundation, organized and operated
exclusively for religious, charitable, scientific, literary, or educational purposes,
or to foster national or international amateur sports competition
(but only if no part of its activities involve the provision of athletic facilities
or equipment), including the encouragement of art and the prevention of cruelty to
children or animals, no part of the net earnings of which inures to the benefit of
any private shareholder or individual, which is not disqualified for tax exemption
under section 501(c)(3) by reason of attempting to influence legislation, and which does not participate
in, or intervene in (including the publishing or distributing of statements), any
political campaign on behalf of (or in opposition to) any candidate for public office;
I.R.C. § 2522(a)(3) —
a fraternal society, order, or association, operating under the lodge system, but
only if such gifts are to be used exclusively for religious, charitable, scientific,
literary, or educational purposes, including the encouragement of art and the prevention
of cruelty to children or animals;
I.R.C. § 2522(a)(4) —
posts or organizations of war veterans, or auxiliary units or societies of any such
posts or organizations, if such posts, organizations, units, or societies are organized
in the United States or any of its possessions, and if no part of their net earnings
insures to the benefit of any private shareholder or individual.
Rules similar to the rules of section 501(j) shall apply for purposes of paragraph (2).
I.R.C. § 2522(b) Nonresidents —
In the case of a nonresident not a citizen of the United States, there shall be
allowed as a deduction the amount of all gifts made during such year to or for the
use of—
I.R.C. § 2522(b)(1) —
the United States, any State, or any political subdivision thereof, or the District
of Columbia, for exclusively public purposes;
I.R.C. § 2522(b)(2) —
a domestic corporation organized and operated exclusively for religious, charitable,
scientific, literary, or educational purposes, including the encouragement of art
and the
prevention of cruelty to children or animals, no part of the net earnings of which
inures to the benefit of any private shareholder or individual, which is not disqualified
for tax exemption under section 501(c)(3) by
reason of attempting to influence legislation, and which does not
participate in, or intervene in (including the publishing or distributing
of statements), any political campaign on behalf of (or in opposition to) any candidate
for public office;
I.R.C. § 2522(b)(3) —
a trust, or community chest, fund, or foundation, organized and operated exclusively
for religious, charitable, scientific, literary, or educational purposes, including
the encouragement of art and the prevention of cruelty to children or animals, no
substantial part of the activities of which is carrying on propaganda, or otherwise
attempting, to influence legislation, and which does not participate in, or intervene
in (including the publishing or distributing of statements), any political campaign
on behalf of (or in opposition to) any candidate for public office;
but only if such gifts are to be used within the United States exclusively for such
purposes;
I.R.C. § 2522(b)(4) —
a fraternal society, order, or association, operating under the lodge system, but
only if such gifts are to be used within the United States exclusively for religious,
charitable, scientific, literary, or educational purposes, including the encouragement
of art and the prevention of cruelty to children or animals;
I.R.C. § 2522(b)(5) —
posts or organizations of war veterans, or auxiliary units or societies of any such
posts or organizations, if such posts, organizations, units, or societies are organized
in the United States or any of its possessions, and if no part of their net earnings
inures to the benefit of any private shareholder or individual.
I.R.C. § 2522(c) Disallowance Of Deductions In Certain Cases
I.R.C. § 2522(c)(1) —
No deduction shall be allowed under this section for a gift to or for the use of
an organization or trust described in section 508(d) or 4948(c)(4) subject to the conditions specified in such sections.
I.R.C. § 2522(c)(2) —
Where a donor transfers an interest in property (other than an interest described
in section 170(f)(3)(B)) to a person, or for a use, described in subsection (a) or (b) and an interest in
the same property is retained by the donor, or is transferred or has been transferred
(for less than an adequate and full consideration in money or money's worth) from
the donor to a person, or for a use, not described in subsection (a) or (b), no deduction
shall be allowed under this section for the interest which is, or has been transferred
to the person, or for the use, described in subsection (a) or (b), unless—
I.R.C. § 2522(c)(2)(B) —
in the case of any other interest, such interest is in the form of a guaranteed annuity
or is a fixed percentage distributed yearly of the fair market value of the property
(to be determined yearly).
I.R.C. § 2522(c)(3) —
Rules similar to the rules of section 2055(e)(4) shall apply for purposes of paragraph (2).
I.R.C. § 2522(c)(4) Reformations To Comply With Paragraph (2)
I.R.C. § 2522(c)(4)(A) In General —
A deduction shall be allowed under subsection (a) in respect of any qualified reformation
(within the meaning of section 2055(e)(3)(B)).
I.R.C. § 2522(c)(4)(B) Rules Similar To Section 2055(e)(3) To Apply —
For purposes of this paragraph, rules similar to the rules of section 2055(e)(3)
shall apply.
I.R.C. § 2522(c)(5) Contributions To Donor Advised Funds —
A deduction otherwise allowed under subsection (a)
for any contribution to a donor advised fund (as defined in section 4966(d)(2)) shall only
be allowed if—
I.R.C. § 2522(c)(5)(A) —
the sponsoring organization (as defined in section 4966(d)(1))
with respect to such donor advised fund is not—
I.R.C. § 2522(c)(5)(A)(i) —
described in paragraph (3) or (4)
of subsection (a), or
I.R.C. § 2522(c)(5)(A)(ii) —
a type III supporting organization
(as defined in section 4943(f)(5)(A))
which is not a functionally integrated type III supporting organization
(as defined in section 4943(f)(5)(B)),
and
I.R.C. § 2522(c)(5)(B) —
the taxpayer obtains a contemporaneous written acknowledgment (determined under rules
similar to the rules of section 170(f)(8)(C))
from the sponsoring organization (as so defined) of such donor advised
fund that such organization has exclusive legal control over the
assets contributed.
I.R.C. § 2522(d) Special Rule For Irrevocable Transfers Of Easements In Real Property —
A deduction shall be allowed under subsection (a) in respect of any transfer of
a qualified real property interest (as defined in section 170(h)(2)(C))
which meets the requirements of section 170(h) (without regard to paragraph
(4)(A) thereof).
I.R.C. § 2522(e) Special Rules For Fractional Gifts
I.R.C. § 2522(e)(1) Denial Of Deduction In Certain Cases
I.R.C. § 2522(e)(1)(A) In General —
No deduction shall be allowed for a contribution of an undivided portion of a taxpayer's
entire interest in tangible personal property unless all interests in the property
are held immediately before such contribution by—
I.R.C. § 2522(e)(1)(A)(i) —
the taxpayer, or
I.R.C. § 2522(e)(1)(A)(ii) —
the taxpayer and the donee.
I.R.C. § 2522(e)(1)(B) Exceptions —
The Secretary may, by regulation, provide for exceptions to subparagraph (A) in cases
where all persons who hold an interest in the property make proportional contributions
of an undivided portion of the entire interest held by such persons.
I.R.C. § 2522(e)(2) Recapture Of Deduction In Certain Cases; Addition To Tax
I.R.C. § 2522(e)(2)(A) In General —
The Secretary shall provide for the recapture of an amount equal to any deduction
allowed under this section (plus interest)
with respect to any contribution of an undivided portion of a taxpayer's entire interest
in tangible personal property—
I.R.C. § 2522(e)(2)(A)(i) —
in any case in which the donor does not contribute all of the remaining interests
in such property to the donee (or, if such donee is no longer in existence, to any
person described in section 170(c))
on or before the earlier of—
I.R.C. § 2522(e)(2)(A)(i)(I) —
the date that is 10 years after the date of the initial fractional contribution,
or
I.R.C. § 2522(e)(2)(A)(i)(II) —
the date of the death of the donor, and
I.R.C. § 2522(e)(2)(A)(ii) —
in any case in which the donee has not, during the period beginning on the date
of the initial fractional contribution and ending on the date described in clause
(i)—
I.R.C. § 2522(e)(2)(A)(ii)(I) —
had substantial physical possession of the property, and
I.R.C. § 2522(e)(2)(A)(ii)(II) —
used the property in a use which is related to a purpose or function constituting
the basis for the organizations' exemption under section 501.
I.R.C. § 2522(e)(2)(B) Addition To Tax —
The tax imposed under this chapter for any taxable year for which there is a recapture
under subparagraph (A) shall be increased by 10 percent of the amount so recaptured.
I.R.C. § 2522(e)(2)(C) Initial Fractional Contribution —
For purposes of this paragraph, the term “initial fractional contribution”
means, with respect to any donor, the first gift of an undivided portion of the donor's
entire interest in any tangible personal property for which a deduction is allowed
under subsection (a) or (b).
I.R.C. § 2522(f) Cross References
I.R.C. § 2522(f)(1) —
For treatment of certain organizations providing child care, see section 501(k).
I.R.C. § 2522(f)(2) —
For exemption of certain gifts to or for the benefit of the United States and for
rules of construction with respect to certain bequests, see section 2055(f).
I.R.C. § 2522(f)(3) —
For treatment of gifts to or for the use of Indian tribal governments (or their subdivisions),
see section 7871.
(Aug. 16, 1954, ch. 736, 68A Stat. 410; Sept. 2, 1958,
Pub. L. 85-866, title I, 30(d), 72 Stat. 1631; Dec. 30, 1969, Pub. L. 91-172, title II, 201(d)(3), (4)(C), (D), 83 Stat. 561, 562; Dec. 31, 1970, Pub. L. 91-614, title I, 102(c)(2), 84 Stat. 1841; Oct. 4, 1976, Pub. L. 94-455, title XII, 1307(d)(1)(B)(iv), (v), 1313(b)(3), title XIX, 1902(a)(11),
(12)(D), title XXI, 2124(e)(3), 90 Stat. 1727, 1730, 1805, 1806, 1920; Aug. 13, 1981, Pub. L. 97-34, title IV, 423(b), 442(c), 95 Stat. 317, 322; Sept. 3, 1982, Pub. L. 97-248, title II, 286(b)(3), 96
Stat. 570; Jan. 14, 1983, Pub. L. 97-473, title II, 202(b)(7), 96 Stat. 2610; July 18, 1984, Pub. L. 98-369, div. A, title X, 1022(c), 1032(b)(3), 98 Stat. 1028, 1034; Oct. 22, 1986, Pub. L. 99-514, title XIV, 1422(b), 100 Stat. 2717; Dec. 22, 1987, Pub. L. 100-203, title X, 10711(a)(5), (6), 101 Stat. 1330-464; Aug. 17, 2006, Pub. L. 109-280, title XII, Sec. 1218(c), 1234(c), 120 Stat. 780; Dec. 29, 2007, Pub. L. 110-172, Sec. 3(d)(2), 11(a)(16), 121 Stat. 2473; Pub. L. 115-141, Div. U, title IV, Sec. 401(a)(204), Mar. 23, 2018, 132 Stat. 348.)
BACKGROUND NOTES
Amendments to Subchapter
1976--Pub. L. 94-455, title XX, 2001(c)(2)(B)(ii), Oct. 4, 1976, 90 Stat. 1853, struck out item 2521 “Specific exemption”.
[2521. Repealed. Pub. L. 94-455, title XX, 2001(b)(3), Oct. 4, 1976, 90 Stat. 1849]
Section, act Aug. 16, 1954, ch. 736, 68A Stat. 410, allowed a deduction, in the case of a citizen or resident, an exemption of $30,000,
less amounts claimed and allowed for calendar year 1932 and calendar years intervening
between that year and year for which tax is being computed.
AMENDMENTS
2018 -
Subsec. (c)(1). Pub. L. 115-141, Div. U, Sec. 401(a)(204), amended par. (1) by substituting “to or for”
for “to of for”.
2007 - Subsec. (e)(1)(A). Pub. L. 110-172, Sec. 11(a)(16)(A), amended subpar. (A) by substituting “all interests in the property are”
for “all interest in the property is”.
Subsec. (e)(2)-(4). Pub. L. 110-172, Sec. 3(d)(2)(A)-(B), struck par. (2) and (4) and redesignated par. (3) as par. (2). Before being
struck, par. (2) and (4) read as follows:
“(2) Valuation Of Subsequent Gifts—
In the case of any additional contribution, the fair market value of such contribution
shall be determined by using the lesser of--
“ (A) the fair market value of the property at the time of the initial fractional
contribution, or
“(B) the fair market value of the property at the time of the additional contribution.”
“(4) Definitions—For purposes of this subsection--
“ (A) Additional Contribution— The
term “additional contribution” means any gift for which a deduction
is allowed under subsection (a) or (b) of any interest in a property with respect
to which the donor has previously made an initial fractional contribution.
“(B) Initial Fractional Contriibution—
The term “initial fractional contribution” means, with respect to any
donor, the first gift of an undivided portion of the donor's entire interest
in any tangible personal property for which a deduction is allowed under subsection
(a) or (b).”
Subsec. (e)(2)(A)(i). Pub. L. 110-172, Sec. 11(a)(16)(B), amended clause (i) of par. (2)(A), as redesignated, by substituting “interests”
for “interest” and by substituting “on or before”
for “before”.
Subsec. (e)(2)(C). Pub. L. 110-172, Sec. 3(d)(2)(C), amended par. (2), as redesignated, by adding subpar. (C).
2006 - Subsec. (c)(5). Pub. L. 109-280, Sect. 1234(c), added par. (5).
Subsec. (e)-(f). Pub. L. 109-280, Sec. 1218(c), redesignated subsec. (e) as subsec.
(f) and added a new subsec. (e).
1987--Subsecs. (a)(2), (b)(2),
(3). Pub. L. 100-203 inserted
“(or in opposition to)” after “on behalf of”.
1986--Subsecs. (d), (e). Pub. L. 99-514 added subsec. (d) and redesignated former subsec. (d) as (e).
1984--Subsec. (c)(4). Pub. L. 98-369, 1022(c), added par. (4).
Subsec. (d). Pub. L. 98-369, 1032(b)(3), added par. (1) and redesignated former pars. (1) and (2)
as (2) and (3), respectively.
1983--Subsec. (d). Pub. L. 97-473 designated existing provisions as par. (1), substituted “bequests” for
“gifts” second time appearing in par. (1) as so designated, and added
par. (2).
1982--Subsec. (a). Pub. L. 97-248 inserted provision that rules similar to rules of section 501(j) apply for purposes
of par. (2).
1981--Subsec. (a). Pub. L. 97-34, 442(c), substituted “year"
for “quarter” in two places in provision preceding par. (1).
Subsec. (b). Pub. L. 97-34, 442(c), substituted “year” for “quarter” in provision preceding
par.
(1).
Subsec. (c)(3). Pub. L. 97-34, 423(b), added par. (3).
1976--Subsec. (a)(1). Pub. L. 94-455, 1902(a)(12)(D), struck out
“Territory” after “any State”.
Subsec. (a)(2). Pub. L. 94-455, 1307(d)(1)(B)(iv), 1313(b)(3), substituted “which is not disqualified for
tax exemption under section 501(c)(3) by reason of attempting to influence legislation”
for “no substantial part of the activities of which is carrying on propaganda,
or otherwise attempting, to influence legislation” after “shareholder
or individual” and inserted
“or to foster national or international amateur sports competition
(but only if no part of its activities involve the provision of athletic facilities
or equipment)” after “or educational purposes”.
Subsec. (b)(1). Pub. L. 94-455, 1902(a)(12)(D), struck out “Territory” after “any State”.
Subsec. (b)(2). Pub. L. 94-455, 1307(d)(1)(B)(v), substituted “which is not disqualified for tax exemption
under section 501(c)(3) by reason of attempting to influence legislation” for
“no substantial part of the activities of which is carrying on propaganda, or
otherwise attempting, to influence legislation” after “shareholder or
individual”.
Subsec. (c)(2). Pub. L. 94-455, 2124(e)(3), substituted “(other than an interest described in section 170(f)(3)(B))”
for “(other than a remainder interest in a personal residence or farm or an
undivided portion of the donor's entire interest in property)” after “an
interest in property”.
Subsec. (d). Pub. L. 94-455, 1902(a)(11), substituted subsec. (d) for former subsec. (d), pars.
(1) through (10), which dealt with cross references to specific exemptions and rules
of construction for gifts to the United States and its instrumentalities.
1970--Pub. L. 91-614 substituted “quarter” for “year” in three places.
1969--Subsecs. (a)(2), (b)(2),
(3). Pub. L. 91-172, 201(d)(4)(C),
(D), inserted non-participation and non-intervention in political campaigns as an
additional qualification.
Subsec. (c). Pub. L. 91-172, 201(d)(3), substituted substantive provisions for simple reference to sections 503
and 681 in which such substantive provisions were formerly set out.
1958--Subsec. (c). Pub. L. 85-866 substituted “503” for “504”.
EFFECTIVE DATE OF 2018 AMENDMENT
Amendment by Pub. L. 115-141, Div. U, Sec. 401(a)(204), effective March 23, 2018.
EFFECTIVE DATE OF 2007 AMENDMENTS
Amendments by Sec. 3(d)(2) of Pub. L. 110-172 effective as if included in the provisions of the Pension Protection Act of 2006
[Pub. L. 109-280, Sec. 1218] to which they relate.
Amendments by Sec. 11(a)(16) of Pub. L. 110-172 effective on the date of the enactment of this Act [Enacted: Dec. 29, 2007].
EFFECTIVE DATE OF 2006 AMENDMENTS
Amendments by Sec. 1218(c) of Pub. L. 109-280 applicable to contributions, bequests, and gifts made after the date of the enactment
of this Act
[Enacted: Aug. 17, 2006].
Amendment by Sec. 1234(c) of Pub. L. 109-280 applicable to contributions made after the date which is 180 days after the date
of the enactment of this Act [Enacted: Aug. 17, 2006].
EFFECTIVE DATE OF 1987 AMENDMENT
Amendment by Pub. L. 100-203 applicable with respect to activities after Dec. 22, 1987, see section 10711(c) of
Pub. L. 100-203, set out as a note under section 170 of this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by Pub. L. 99-514 applicable to transfers and contributions made after Dec. 31, 1986, see section 1422(e)
of Pub. L. 99-514, set out as a note under section 2055 of this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by section 1022(c) of Pub. L. 98-369 applicable to reformations after Dec. 31, 1978, but inapplicable to any reformation
to which section 2055(e)(3) of this title as in effect before July 18, 1984, applies,
see section 1022(e)(1) of Pub. L. 98-369, set out as a note under section 2055 of this title.
Amendment by section 1032(b)(3) of Pub. L. 98-369 applicable to taxable years beginning after July 18, 1984, see section 1032(c) of
Pub. L. 98-369, set out as a note under section 170 of this title.
EFFECTIVE DATE OF 1983 AMENDMENT
For effective date of amendment by Pub. L. 97-473, see section 204(4) of Pub. L. 97-473, set out as an Effective Date note under section 7871 of this title.
EFFECTIVE DATE OF 1982 AMENDMENT
Amendment by Pub. L. 97-248 effective Oct. 5, 1976, see section 286(c) of Pub. L. 97-248, set out as a note under section 501 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Section 423(c)(2) of Pub. L. 97-34 provided that: “The amendment made by subsection
(b) [amending this section] shall apply to transfers after December 31, 1981.”
Amendment by section 442(c) of Pub. L. 97-34 applicable with respect to gifts made after Dec. 31, 1981, see section 442(e) of
Pub. L. 97-34, set out as a note under section 2501 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 2124(e)(3) of Pub. L. 94-455 applicable with respect to contributions or transfers made after June 13, 1976, see
section 2124(e)(4)
of Pub. L. 94-455, set out as a note under section 170 of this title.
EFFECTIVE DATE OF 1970 AMENDMENT
Amendment by Pub. L. 91-614 applicable with respect to gifts made after Dec. 31, 1970, see section 102(e)
of Pub. L. 91-614, set out as a note under section 2501 of this title.
EFFECTIVE DATE OF 1969 AMENDMENT
Amendment by section 201(d)(3) of Pub. L. 91-172 applicable to gifts made after Dec. 31, 1969, except that the amendment of par. (2)
of subsec.
(c) applicable to gifts made after July 31, 1969, see section 201(g)(4)(D)
of Pub. L. 91-172, set out as a note under section 170 of this title.
Amendment by section 201(d)(4)(C), (D) of Pub. L. 91-172 applicable to gifts and transfers made after Dec. 31, 1969, see section 201(g)(4)(E)
of Pub. L. 91-172, set out as a note under section 170 of this title.
CHARITABLE LEAD TRUSTS AND CHARITABLE REMAINDER TRUSTS IN CASE OF INCOME AND GIFT
TAXES
For inclusion of provisions comparable to section 2055(e)(3) of this title in this
section, see section 514(b) of Pub. L. 95-600, set out as a note under section 2055 of this title.
