[Not applicable to any transfer by gift made on or after January 1, 2012, see 67-8-118.]

(a) Where a donor transfers during the calendar year by gift an interest in any property specified in § 67-8-101(a) or (b) to a donee who at the time of the gift is the donor’s spouse, there shall be allowed as a deduction, in computing taxable gifts an amount equal to the gift. Section 2523(b)-(g) of the Internal Revenue Code (26 U.S.C. § 2523(b)-(g)), shall be applicable to this deduction; provided, that the election specified in § 2523(f) of the Internal Revenue Code (26 U.S.C. § 2523(f)), is made to the department of revenue; and provided further, that the reference to “subsection (a)” in paragraph (1)(A) of § 2523(f) shall be treated as meaning the first sentence of this subsection (a).

Terms Used In Tennessee Code 67-8-105

  • Code: includes the Tennessee Code and all amendments and revisions to the code and all additions and supplements to the code. See Tennessee Code 1-3-105
  • Donee: The recipient of a gift.
  • Donor: The person who makes a gift.
  • Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
  • Person: includes a corporation, firm, company or association. See Tennessee Code 1-3-105
  • Property: includes both personal and real property. See Tennessee Code 1-3-105
  • Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
  • Year: means a calendar year, unless otherwise expressed. See Tennessee Code 1-3-105
(b) A gift made by one (1) spouse to any person other than the donor’s spouse shall, for purposes of this chapter, be considered as made one-half (1/2) by the donor and one-half (1/2) by the donor’s spouse. This subsection (b) shall not apply with respect to a gift by a spouse of an interest in property, if the donor creates in the donor’s spouse a general power of appointment, as defined in § 2514(c) of the Internal Revenue Code (26 U.S.C. § 2514(c)), over such interest. For purposes of this subsection (b), an individual shall be considered as the spouse of another individual only if the spouse is married to such individual at the time of the gift and does not remarry during the remainder of the calendar year. The liability for gift tax with respect to gifts made under this subsection (b) shall be joint and several between the spouses. This subsection (b) shall apply only if both spouses have signified, under rules promulgated by the commissioner, their consent to the application of this subsection (b) in the case of all such gifts made during the calendar year by either while married to the other.
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