If the property was acquired by gift after
If the property was acquired after
If the property was acquired by gift or transfer in trust on or before
(1) In general
If—
(A) the property is acquired by gift on or after
(B) the property was acquired by gift before
(2) Amount of tax paid with respect to gift
For purposes of paragraph (1), the amount of gift tax paid with respect to any gift is an amount which bears the same ratio to the amount of gift tax paid under chapter 12 with respect to all gifts made by the donor for the calendar year (or preceding calendar period) in which such gift is made as the amount of such gift bears to the taxable gifts (as defined in but computed without the deduction allowed by section 2521) made by the donor during such calendar year or period. For purposes of the preceding sentence, the amount of any gift shall be the amount included with respect to such gift in determining (for the purposes of ) the total amount of gifts made during the calendar year or period, reduced by the amount of any deduction allowed with respect to such gift under section 2522 (relating to charitable deduction) or under section 2523 (relating to marital deduction).
(3) Gifts treated as made one-half by each spouse
For purposes of paragraph (1), where the donor and his spouse elected, under section 2513 to have the gift considered as made one-half by each, the amount of gift tax paid with respect to such gift under chapter 12 shall be the sum of the amounts of tax paid with respect to each half of such gift (computed in the manner provided in paragraph (2)).
(4) Treatment as adjustment to basis
For purposes of , an increase in basis under paragraph (1) shall be treated as an adjustment under .
(5) Application to gifts before 1955
With respect to any property acquired by gift before 1955, references in this subsection to any provision of this title shall be deemed to refer to the corresponding provision of the Internal Revenue Code of 1939 or prior revenue laws which was effective for the year in which such gift was made.
(6) Special rule for gifts made after
(A) In general
In the case of any gift made after
(i) the net appreciation in value of the gift, bears to
(ii) the amount of the gift.
(B) Net appreciation
For purposes of paragraph (1), the net appreciation in value of any gift is the amount by which the fair market value of the gift exceeds the donor’s adjusted basis immediately before the gift.
In the case of any property acquired by gift in a transfer described in , the basis of such property in the hands of the transferee shall be determined under and not this section.