§1491. Imposition of tax

There is hereby imposed on the transfer of property by a citizen or resident of the United States, or by a domestic corporation or partnership, or by an estate or trust which is not a foreign estate or trust, to a foreign corporation as paid-in surplus or as a contribution to capital, or to a foreign estate or trust, or to a foreign partnership, an excise tax equal to 35 percent of the excess of-

(1) the fair market value of the property so transferred, over

(2) the sum of-

(A) the adjusted basis (for determining gain) of such property in the hands of the transferor, plus

(B) the amount of the gain recognized to the transferor at the time of the transfer.

(Aug. 16, 1954, ch. 736, 68A Stat. 365 ; Oct. 4, 1976, Pub. L. 94–455, title X, §1015(a), 90 Stat. 1617 ; Nov. 6, 1978, Pub. L. 95–600, title VII, §701(u)(14)(A), 92 Stat. 2919 .)

Amendments

1978-Pub. L. 95–600 substituted "estate or trust" for "trust" wherever appearing.

1976-Pub. L. 94–455 substituted in provisions preceding par. (1) "property" for "stocks and securities" and "35 percent" for "27½ percent" and in par. (1) "fair market value" for "value" and "property" for "stocks and securities" and in par. (2) designated existing provisions as subpar. (A) and added subpar. (B).

Effective Date of 1978 Amendment

Section 701(u)(14)(C) of Pub. L. 95–600 provided that: "The amendments made by this paragraph [amending this section and section 1492 of this title] shall apply to transfers after October 2, 1975."

Effective Date of 1976 Amendment

Section 1015(d) of Pub. L. 94–455 provided that: "The amendments made by this section [enacting section 1057 of this title, amending this section and section 1492 of this title, and renumbering former section 1057 as 1058 of this title] shall apply to transfers of property after October 2, 1975."

Section Referred to in Other Sections

This section is referred to in sections 814, 1492, 1494 of this title.