for such calendar year and for each of the preceding calendar years, over (2) a tax, computed in accordance with such rate schedule, on the aggregate sum of the taxable gifts for each of the preceding calendar years. RATE SCHEDULE If the taxable gifts are: Over $10,000 but not over $20,000---- Over $4,000,000 but not over $5,000,000. Over $5,000,000 but not over $6,000,000. Over $6,000,000 but not over $7,000,000. Over $7,000,000 but not over $8,000,000. Over $8,000,000 but not over $10,000,000- The tax shall be: 24% of the taxable gifts. $112.50, plus 54% of excess over $5,000. $375, plus 84% of excess Over $10,000. $1,200, plus 10%2% of excess over $20,000. $2,250, plus 13% % of excess over $30,000. $3,600, plus 16%2% of excess over $40,000. $5,250, plus 1834% of excess over $50,000. $7,125, plus 21% of excess over $60,000. $15,525, plus 221⁄2% of excess over $100,000. $49,275, plus 24% of excess over $250,000. $109,275, plus 26% of excess over $500,000. $174,900, plus 27% of excess over $750,000. $244,275, plus 29% of excess over $1,000,000. $317,400, plus 31%2% of excess over $1,250,000. $396,150, plus 33% of excess over $1,500,000. $564,900, plus 36%% of excess over $2,000,000. $748,650, plus 39% of excess over $2,500,000. $947,400, plus 42% of excess over $3,000,000. $1,157,400, plus 44% of excess over $3,500,000. $1,378,650, plus 47% of excess over $4,000,000. $1,851,150, plus 50% of excess over $5,000,000. $2,353,650, plus 52% of excess over $6,000,000. $2,878,650, plus 54% of excess over $7,000,000. $3,426,150, plus 57% of excess over $8,000,000. $4,566,150, plus 57% of excess over $10,000,000. (b) CALENDAR YEAR.-The term "calendar year" includes only the calendar year 1932 and succeeding calendar years, and, in the case of the calendar year 1932, includes only the portion of such year after June 6, 1932. (c) PRECEDING CALENDAR YEARS.-The term "preceding calendar years" means the calendar year 1932 and all calendar years intervening between the calendar year 1932 and the calendar year for which the tax is being computed. (d) TAX TO BE PAID BY DONOR.-The tax imposed by section 2501 shall be paid by the donor. SEC. 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 (sec. 2521 and following). (b) EXCLUSIONS FROM GIFTS.-In the case of gifts (other than gifts of future interests in property) made to any person by the donor during the calendar year 1955 and subsequent calendar years, the first $3,000 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. (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 (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). SEC. 2504. TAXABLE GIFTS FOR PRECEDING YEARS. (a) IN GENERAL.-In computing taxable gifts for the calendar year 1954 and preceding calendar years for the purpose of computing the tax for the calendar year 1955 or any calendar year thereafter, there shall be treated as gifts such transfers as were considered to be gifts under the gift tax laws applicable to the years in which the transfers were made and there shall be allowed such deductions as were provided for under such laws, except that specific exemption in the amount, if any, allowable under section 2521 shall be applied in all computations in respect of the calendar year 1954 and previous calendar years for the purpose of computing the tax for the calendar year 1955 or any calendar year thereafter. (b) EXCLUSIONS FROM GIFTS FOR PRECEDING YEARS.-In the case of gifts made to any person by the donor during the calendar year 1954 and preceding calendar years, the amount excluded, if any, by the provisions of gift tax laws applicable to the years in which the gifts were made shall not, for purposes of subsection (a), be included in the total amount of the gifts made during such year. (c) VALUATION OF CERTAIN GIFTS FOR PRECEDING CALENDAR YEARS.-If the time has expired within which a tax may be assessed under this chapter or under corresponding provisions of prior laws, on the transfer of property by gift made during a preceding calendar year, as defined in section 2502 (c), and if a tax under this chapter or under corresponding provisions of prior laws has been assessed or paid for such preceding calendar year, the value of such gift made in such preceding calendar year shall, for purposes of computing the tax under this chapter for the calendar year 1955 and subsequent calendar years, be the value of such gift which was used in computing the tax for the last preceding calendar year, for which a tax under this chapter or under corresponding provisions of prior laws was assessed or paid. (d) NET GIFTS.-For years before the calendar year 1955, the term "net gifts" as used in corresponding provisions of prior laws shall be read as "taxable gifts" for purposes of this chapter. Subchapter B-Transfers Sec. 2511. Transfers in general. Sec. 2512. Valuation of gifts. Sec. 2513. Gift by husband or wife to third party. Sec. 2515. Tenancies by the entirety. Sec. 2516. Certain property settlements. Sec. 2517. Certain annuities under qualified plans. SEC. 2511. TRANSFERS IN GENERAL. (a) SCOPE. Subject to the limitations contained in this chapter, the tax imposed by section 2501 shall apply whether the transfer is in trust or otherwise, whether the gift is direct or indirect, and whether the property is real or personal, tangible or intangible; but in the case of a nonresident not a citizen of the United States, shall apply to a transfer only if the property is situated within the United States. (b) STOCK IN CORPORATION.-Shares of stock owned and held by a nonresident not a citizen of the United States shall be deemed property within the United States only if issued by a domestic corporation. SEC. 2512. VALUATION OF GIFTS. (a) If the gift is made in property, the value thereof at the date of the gift shall be considered the amount of the gift. (b) Where property is transferred for less than an adequate and full consideration in money or money's worth, then the amount by which the value of the property exceeded the value of the consideration shall be deemed a gift, and shall be included in computing the amount. of gifts made during the calendar year. SEC. 2513. GIFT BY HUSBAND OR WIFE TO THIRD PARTY. (a) CONSIDERED AS MADE ONE-HALF BY EACH.— (1) IN GENERAL.-A gift made by one spouse to any person other than his spouse shall, for the purposes of this chapter, be considered as made one-half by him and one-half by his spouse, but only if at the time of the gift each spouse is a citizen or resident of the United States. This paragraph shall not apply with respect to a gift by a spouse of an interest in property if he creates in his spouse a general power of appointment, as defined in section 2514 (c), over such interest. For purposes of this section, an individual shall be considered as the spouse of another individual only if he is married to such individual at the time of the gift and does not remarry during the remainder of the calendar year. (2) CONSENT OF BOTH SPOUSES.-Paragraph (1) shall apply only if both spouses have signified (under the regulations provided for in subsection (b)) their consent to the application of paragraph (1) in the case of all such gifts made during the calendar year by either while married to the other. (b) MANNER AND TIME OF SIGNIFYING CONSENT. (1) MANNER.-A consent under this section shall be signified in such manner as is provided under regulations prescribed by the Secretary or his delegate. (2) TIME. Such consent may be so signified at any time after the close of the calendar year in which the gift was made, subject to the following limitations (A) the consent may not be signified after the 15th day of April following the close of such year, unless before such 15th day no return has been filed for such year by either spouse, in which case the consent may not be signified after a return for such year is filed by either spouse; (B) the consent may not be signified after a notice of deficiency with respect to the tax for such year has been sent to either spouse in accordance with section 6212 (a). (c) REVOCATION OF CONSENT.-Revocation of a consent previously signified shall be made in such manner as is provided under regulations prescribed by the Secretary or his delegate, but the right to revoke a consent previously signified with respect to a calendar year (1) shall not exist after the 15th day of April following the close of such year if the consent was signified on or before such 15th day; and (2) shall not exist if the consent was not signified until after such 15th day. (d) JOINT AND SEVERAL LIABILITY FOR TAX.-If the consent required by subsection (a) (2) is signified with respect to a gift made in any calendar year, the liability with respect to the entire tax imposed by this chapter of each spouse for such year shall be joint and several. SEC. 2514. POWERS OF APPOINTMENT. (a) POWERS CREATED ON OR BEFORE OCTOBER 21, 1942.—An exercise of a general power of appointment created on or before October 21, 1942, shall be deemed a transfer of property by the individual possessing such power; but the failure to exercise such a power or the complete release of such a power shall not be deemed an exercise thereof. If a general power of appointment created on or before October 21, 1942, has been partially released so that it is no longer a general power of appointment, the subsequent exercise of such power shall not be deemed to be the exercise of a general power of appointment if (1) such partial release occurred before November 1, 1951, or (2) the donee of such power was under a legal disability to release such power on October 21, 1942, and such partial release occurred not later than six months after the termination of such legal disability. (b) POWERS CREATED AFTER OCTOBER 21, 1942.-The exercise or release of a general power of appointment created after October 21, 1942, shall be deemed a transfer of property by the individual possessing such power. A disclaimer or renunciation of such a power of appointment shall not be deemed a release of such power. (c) DEFINITION OF GENERAL POWER OF APPOINTMENT.-For purposes of this section, the term "general power of appointment" means a power which is exercisable in favor of the individual possessing the |