reglab/statecodes huggingface dataset:
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 11 - Estates in Probate › Section 14515 - Distribution to State of Escheated Property

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A distribution to the State of any property of a person
					 dying on or after June 25, 1935 (the effective date of the Inheritance Tax Act
					 of 1935), to which the State is entitled by reason of escheat, does not
					 constitute a transfer subject to the Inheritance Tax Law. However, if after
					 such distribution the property is delivered pursuant to law to any heir of the
					 decedent entitled thereto, a transfer is deemed to have been made to the heir
					 as of the date of death of the decedent.
A distribution to the State of any property of a person
					 dying prior to June 25, 1935, to which the State is entitled by reason of
					 escheat, constitutes a transfer subject to the Inheritance Tax Law. In such
					 case the tax is computed as though the transfer is made to a stranger. If the
					 property is subsequently delivered pursuant to law to any heir of the decedent
					 whose relationship to the decedent is nearer than that of a stranger, a refund
					 will be made as in the case of a tax paid upon a transfer subject to a
					 contingency or condition, (see Revenue and Taxation Code Section
					 13411).
NOTE: Reference: Section
					 14515,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 11.1 - Proceeding Initiated by Controller › Section 14533 - Hearing Before Referee

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
In conducting any hearing in a proceeding to determine tax
					 instituted by the State Controller, the referee has substantially all the
					 powers specified in Section
					 14502.
NOTE: Reference: Section
					 14533,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 11.1 - Proceeding Initiated by Controller › Section 14533.1 - Statute of Limitations

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
There is no statute of limitations respecting the time
					 within which the proceeding mentioned in Revenue and Taxation Code Sections
					 14531
					 through
					 14537
					 may be commenced.
NOTE: Reference: Section
					 14533,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 11.2 - Proceeding Initiated by Interested Party › Section 14551 - Statute of Limitations

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
There is no statute of limitations respecting the time
					 within which the proceedings mentioned in Revenue and Taxation Code Sections
					 14551
					 through
					 14555
					 may be commenced.
NOTE: Reference: Section
					 14551,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 11.3 - Tax Determination by the Controller › Section 14560 - In General

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The Controller may make a determination of the taxability,
					 tax liability, and amount of tax on transfers subject to tax in any case where
					 no court proceeding is pending or likely to be filed, or should in the opinion
					 of the Controller be filed, in which such a determination may be made. Court
					 proceedings in which a tax may be determined include a probate of decedent's
					 estate (Revenue and Taxation Code Sections
					 14501-
					 14515),
					 petition by Controller (Revenue and Taxation Code Sections
					 14531-
					 14537),
					 petition by interested party (Revenue and Taxation Code Sections
					 14551-
					 14555),
					 actions to quiet title (Revenue and Taxation Code Sections
					 14571-
					 14577)
					 and petition to establish fact of death (Probate Code Section
					 1174).
NOTE: Reference: Section
					 14560,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 11.3 - Tax Determination by the Controller › Section 14561 - Referral to Referee

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
In those cases where, under Revenue and Taxation Code
					 Section
					 14560,
					 the Controller may issue a tax determination in absence of a court proceeding,
					 the matter may be referred to an inheritance tax referee to ascertain and
					 submit a report on:
(a) The clear
				  market value of the property included in each transfer subject to
				  tax.
(b) The amount of tax due and
				  payable on each transfer.
(c) Such
				  other facts as will assist the Controller in the determination of the tax.
The documents to be submitted to the referee, or the
					 Controller in absence of a referral to a referee, are the same as those
					 specified in Sections
					 14501 and
					 14501.1.
Referral to an inheritance tax referee will be made only in
					 those cases in which appraisals of the assets will have a bearing on the
					 tax.
NOTE: Reference: Section
					 14561,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 11.3 - Tax Determination by the Controller › Section 14562 - Notice of Determination

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Upon determining the inheritance tax due on any transfer,
					 the Controller will notify the person filing form IT-22 or the persons liable
					 for the tax. The notice will be by mail to the address stated in the form IT-22
					 or by personal service. The Controller may also send copies of the notice to
					 such other persons as may be appropriate.
NOTE: Reference: Section
					 14562,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 11.3 - Tax Determination by the Controller › Section 14563 - Finality of Determination

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The Controller's determination of tax becomes final 60 days
					 after the date on which notice thereof is mailed as specified in Section
					 14562
					 and Revenue and Taxation Code Section
					 14562 unless within such time a
					 proceeding in which the tax may be fixed by court order is instituted. Written
					 notice of such a proceeding must be given to the Controller. If such a
					 proceeding is timely instituted, the Controller's determination is superseded
					 and determination of the tax will proceed as if no Controller's determination
					 had been made.
NOTE: Reference: Section
					 14563,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 11.3 - Tax Determination by the Controller › Section 14563.1 - Effect of Determination

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Upon becoming final a Controller's determination shall
					 thereafter have the same force and effect as an order fixing tax made by a
					 court in a proceeding in which such an order may be made. Pursuant to Revenue
					 and Taxation Code Section
					 14672
					 such order has the force and effect of a judgment in a civil action.
The determination is conclusive only as to such property as
					 may have been included in transfers disclosed to the Controller before the
					 determination was made.
NOTE: Reference: Section
					 14563,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 12 - Court Jurisdiction › Section 14651 - Court Jurisdiction-Resident Decedent

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
In the case of a decedent who died a resident of
					 California, the superior court of the county in which he last resided as a rule
					 has jurisdiction to hear and determine all questions relative to any tax
					 imposed by the Inheritance Tax Law on any transfer by him.
NOTE: Reference: Section
					 14651,
					 Revenue and Taxation Code; Section
					 301, Probate
					 Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 12 - Court Jurisdiction › Section 14653 - Court Jurisdiction-Nonresident Decedent

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
In the case of a decedent who died a nonresident of
					 California, the superior court of the county in which any of the decedent's
					 real property is situated, or, if he owned no real property in this State, then
					 the superior court of any county in which any of his personal property is
					 situated, as a rule has jurisdiction to hear and determine all questions
					 relative to any tax imposed by the Inheritance Tax Law on any transfer by the
					 decedent. If the decedent leaves real or personal property in more than one
					 county in this State, the superior court of any such county which first
					 acquires jurisdiction will retain the same to the exclusion of the superior
					 court of any other such county.
NOTE: Reference: Section
					 14653,
					 Revenue and Taxation Code; Section
					 301, Probate
					 Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 12 - Court Jurisdiction › Section 14653.1 - Paramount Jurisdiction of Probate Court

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Notwithstanding Sections
					 14651 and
					 14653,
					 any superior court which has acquired jurisdiction in probate of the estate of
					 any decedent has exclusive jurisdiction to hear and determine all questions
					 relative to any tax imposed by the Inheritance Tax Law on any transfer by the
					 decedent.
NOTE: Reference: Section
					 14653, Revenue and Taxation
					 Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 13 - Administration › Section 14732 - Division of Tax Administration-Inheritance Tax-in General

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The State Controller supervises the administration of the
					 Inheritance Tax Law through the medium of the Division of Tax
					 Administration-Inheritance Tax of his office.
To facilitate the work of the division, the State
					 Controller has divided the State into three districts with an office of the
					 division in each, as follows:
(a)
				  Northern District: Headquarters--Room 402, 1227 O Street, Sacramento 95802
				  (P.O. Box 247).
Includes the Counties of Alpine, Amador, Butte, Calaveras,
					 Colusa, El Dorado, Fresno, Glenn, Kings, Lake, Lassen, Madera, Mariposa,
					 Merced, Modoc, Napa, Nevada, Placer, Plumas, Sacramento, San Joaquin, Shasta,
					 Sierra, Siskiyou, Solano, Stanislaus, Sutter, Tehama, Trinity, Tulare,
					 Tuolumne, Yolo, Yuba.
(b)
				  Central District: Headquarters--Humboldt Bank Building, 785 Market Street, San
				  Francisco 94103.
Includes the Counties of Alameda, Contra Costa, Del Norte,
					 Humboldt, Marin, Mendocino, Monterey, San Benito, San Francisco, San Luis
					 Obispo, San Mateo, Santa Clara, Santa Cruz, Sonoma.
(c) Southern District: Headquarters--Room
				  6125, 107 South Broadway, Los Angeles 90012.
Includes the Counties of Imperial, Inyo, Kern, Los Angeles,
					 Mono, Orange, Riverside, San Bernardino, San Diego, Santa Barbara,
					 Ventura.
Any correspondence with the division relative to any matter
					 arising within a particular county should be sent to the headquarters of the
					 district within which the county is located.
1. Amendment
					 filed 7-2-81; effective thirtieth day thereafter (Register 81, No.
					 27).
Note: Authority cited: Section
						14740,
						Revenue and Taxation Code. Reference Section
						14502,
						Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 13.1 - Inheritance Tax Referees › Section 14772 - Ethics

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The conduct and professional activities of Inheritance Tax
					 Referees should reflect credit to the profession and adhere to the common rules
					 of integrity applying to all officers of the Court. Their official activities
					 must be conducted in such an impartial manner that all persons understand that
					 no Referee can be influenced by other than proper methods. Referees must avoid
					 situations where prejudice, bias or opportunity for improper personal gain
					 could influence their decisions. They must equally avoid circumstances
					 suggesting that favoritism or improper personal gain must be a motivating force
					 in the performance of their statutory responsibilities.
Consistent with such objectives, an Inheritance Tax Referee
					 shall not:
(a) Advertise the position
				  of Inheritance Tax Referee in conjunction with any other profession, business
				  or occupation; or use in any way the title of Inheritance Tax Referee in
				  connection with any public or private matter which is unrelated to the
				  referee's duties, functions or responsibilities.
(b) Directly or indirectly acquire or
				  negotiate to acquire, either as principal or agent, an interest in property
				  appraised by said Referee in his or her official capacity as Inheritance Tax
				  Referee, until there has either been a bona fide sale or transfer of such
				  property to a third person, a lapse of three years from date of the appraisal,
				  or judicial approval after the court has been given full knowledge of all facts
				  concerning the Referee's official involvement with the property.
(c) Engage in any employment, activity or
				  enterprise, or have any interest, financial or otherwise, direct or indirect,
				  which is inconsistent, in-compatible, in conflict with, or inimical to his
				  duties, functions or responsibilities as a Referee.
(d) Receive or accept, directly or
				  indirectly, any gift (including money, service, gratuity, favor, entertainment,
				  hospitality, loan or any other thing of value) under circumstances from which
				  it reasonably could be inferred that the gift was intended to influence the
				  performance of official duties or was intended as a reward for any official
				  action.
(e) Engage in any political
				  activity which is contrary to the provisions of Revenue and Taxation Code
				  Section
				  14778.
(f) Engage at any time in conduct or behavior
				  which causes discredit to the Office of Inheritance Tax Referee, including, but
				  not limited to, dishonesty, intemperance or conviction of a felony or
				  conviction of a misdemeanor involving moral turpitude.
NOTE: Reference: Section
					 14772,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 13.1 - Inheritance Tax Referees › Section 14772.1 - Performance

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
An Inheritance Tax Referee shall:
(a) Promptly perform all duties required by
				  law in a competent and efficient manner.
(b) Use accepted appraisal practices and
				  procedures in determining the fair market value of assets to be
				  appraised.
(c) Employ necessary
				  staff personnel to guarantee that all work is properly performed without
				  unreasonable delay and be responsible for conformance to these standards by his
				  or her staff.
(d) Not disclose an
				  appraisal, finding or determination to a third party without permission of the
				  Office of State Controller where appropriate or the attorney for the estate,
				  and personal representative or surviving transferee, in cases of nonprobate
				  property, unless required to do so by law.
(e) Obtain an advisory appraisal by a Referee
				  of another county when:
(1) An interest in
				  real property is located in such other county;
(2) Appraising an interest in a business
				  entity (partnership, corporation, trust, etc.) owning an interest in real
				  property in such other county when the Referee concludes that such property
				  should be appraised in order to value the decedent's interest in the business
				  entity. (The request for an advisory opinion should indicate the property's
				  inclusion in a separate entity.)
If contiguous real property subject to (1) or (2) is
					 located in two or more such counties, the advisory appraisal on the entire
					 parcel shall be obtained from one Referee in any such county.
(3) An advisory opinion is not required if
				  either:
(A) A parcel of real property is
				  situated partly in the county of decedent's domicile and partly in an adjoining
				  county;
(B) Consent to appraise the
				  real property without an advisory appraisal is first obtained from all
				  Inheritance Tax Referees of the county in which the real property is
				  located;
(C) It appears from all
				  available evidence that the value of the interest in the real property does not
				  exceed $5,000; or
(D) The appraisal
				  is a "reappraisal for purposes of sale" and the Inheritance Tax Referee is
				  satisfied from all available information that the sale price is consistent with
				  the prior appraisal and the sale is a bona fide sale.
NOTE: Reference: Section
					 14772,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 13.1 - Inheritance Tax Referees › Section 14772.2 - Training

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) An Inheritance
				  Tax Referee shall complete a minimum of twenty hours per year of acceptable
				  continuing educational study as defined by the Office of the State
				  Controller.
(b) An Inheritance Tax
				  Referee shall be responsible for providing adequate training to his or her
				  staff to insure that official duties will be performed in a competent and
				  efficient manner.
NOTE: Reference: Section
					 14772,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 13.2 - County Treasurers › Section 14791 - In General

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Repealer
					 of Article 13.2 (Section
					 14791) filed 7-2-81; effective
					 thirtieth day thereafter (Register 81, No. 27).
Note: Authority cited: Section
						14740,
						Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 13.3 - Inspection of Records › Section 14813 - Information Confidential

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  All information and records relative to any tax imposed by the Inheritance Tax
				  Law acquired by the State Controller or by the inheritance or any assistant
				  inheritance tax attorney is confidential in nature and, except as may be
				  necessary for the enforcement of the law, cannot be divulged to any person
				  other than a person liable for the tax or his duly authorized agent, or any
				  local, state, or federal tax official.
(b) If the Controller has received the
				  information to be divulged from the United States Internal Revenue Service, the
				  person to whom it is divulged shall be advised of its source and that the
				  confidentiality afforded thereto must be the same as if it were received
				  directly from the Internal Revenue Service. Such information may be divulged
				  only (1) to representatives of the Internal Revenue Service; (2) to the State
				  Board of Equalization and the Franchise Tax Board; and (3) in judicial
				  proceedings for enforcement of the California Inheritance and Gift Tax Laws.
NOTE: Reference: Section
					 14813,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 2 - Gift Tax › Article 1 - Definitions › Section 15103 - Property-in General

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The Gift Tax Law reaches any real or personal property, and
					 any right or interest therein or income therefrom, the transfer of which this
					 State is not prohibited from taxing by either the California or Federal
					 Constitution. In general, the property must either be situated in California or
					 be within the State's taxing jurisdiction.
1. Repealer
					 of Subchapter 2 (Sections
					 15103(a) through
					 16563-16564, not consecutive) and
					 new Subchapter 2 (Sections
					 15103-16563, not consecutive)
					 filed 9-22-78 as procedural and organizational; designated effective 12-1-78.
					 For history of former Subchapter 2, see Registers 59, No. 20; 66, No. 8; 73,
					 No. 15; 75, No. 17; 76, No. 5 and 76, No. 51.
Note: Authority cited: for Subchapter 2 (Sections
						15103 through
						16563, not consecutive): Section
						16506,
						Revenue and Taxation Code. Reference: Section
						15103,
						Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 2 - Gift Tax › Article 1 - Definitions › Section 15103.1 - Property of Resident Donors

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Real Property.
Real property in this State belonging to a resident donor
					 is subject to the Gift Tax Law. Real property outside the State belonging to a
					 resident donor is not subject to the law.
(b) Tangible Personal Property.
Tangible personal property in this State belonging to a
					 resident donor is subject to the Gift Tax Law. Tangible personal property
					 permanently outside the State belonging to a resident donor is not subject to
					 the law.
(c) Intangible
				  Personal Property.
Intangible personal property, wherever situated, belonging
					 to a resident donor is subject to the Gift Tax Law.
NOTE: Reference: Section
					 15103,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 2 - Gift Tax › Article 1 - Definitions › Section 15103.2 - Property of Nonresident Donors

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Real Property.
Real property in this State belonging to a nonresident
					 donor is subject to the Gift Tax Law.
(b) Tangible Personal Property.
Tangible personal property permanently in this State
					 belonging to a nonresident donor is subject to the Gift Tax
					 Law.
(c) Intangible Personal
				  Property.
Ordinarily, intangible personal property belonging to a
					 nonresident donor is not subject to the Gift Tax Law unless it has acquired a
					 so-called "business situs" (i. e., been actively used in connection with some
					 business) in this State.
Any intangible personal property of a nonresident donor
					 otherwise subject to the Gift Tax Law is not subject thereto if transferred by
					 a donor who at the date of the transfer was a resident of a state or territory
					 of the United States or of a foreign state or country which then imposed a gift
					 tax in respect to the intangibles of its own residents, but either:
(1) Did not impose such a tax in respect to
				  intangible personal property of residents of this State; or
(2) Had a reciprocity provision in its law
				  exempting from its tax the intangibles of nonresidents of other jurisdictions
				  whose laws, in turn, contain a similar exemption.
Note: As to the intangibles exemption of nonresident
					 donors, see Section
					 15451
					 and 15451.1, and Revenue and Taxation Code Section
					 15451.
NOTE: Reference: Section
					 15103,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 2 - Gift Tax › Article 1 - Definitions › Section 15103.3 - Intangible Personal Property

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The term "intangible personal property" includes stocks,
					 bonds, notes (whether secured or unsecured), bank deposits, accounts
					 receivable, patents, trademarks, copyrights, goodwill, partnership interests,
					 life insurance policies, and other choses in action.
NOTE: Reference: Section
					 15103,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 2 - Gift Tax › Article 1 - Definitions › Section 15103.4 - Residence

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
For the purpose of the Gift Tax Law the term "residence" is
					 synonymous with legal residence or domicile.
Any donor who claims that his residence is outside the
					 State of California must, in support of such claim, file with the State
					 Controller an affidavit to that effect on Form GT-11.
NOTE: Reference: Section
					 15103,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 2 - Gift Tax › Article 1 - Definitions › Section 15103.5 - Residence of Married Women and Minors

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Generally, a married woman has the same residence as her
					 husband, even though she is separated from him. The residence of a minor,
					 ordinarily, is that of the father, or of the mother if the father is deceased.
					 Accordingly, if a man has his residence in California, his wife and minor
					 children, generally, likewise have their residence here.
NOTE: Reference: Section
					 15103,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 2 - Gift Tax › Article 1 - Definitions › Section 15103.6 - Resident

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The term "resident" means a person whose residence is in
					 the State of California.
Note: Reference: Section
						15103,
						Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 2 - Gift Tax › Article 1 - Definitions › Section 15103.7 - Nonresident

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The term "nonresident" means a person whose residence is
					 outside the State of California.
Note: Reference: Section
						15103,
						Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 2 - Gift Tax › Article 1 - Definitions › Section 15103.8 - Joint Tenancy

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
For the purpose of the Gift Tax Law the term "joint
					 tenancy" includes any ownership of property by two or more persons, the
					 respective interests of whom are equal, both as to title and possession, and
					 were acquired at the same time and by the same title. The distinguishing
					 incident of this character of ownership is the right of the surviving owner to
					 the sole ownership of the property by virtue of his survivorship.
Note: As to transfers of joint tenancy property, see
					 Sections 15104.2,
					 15104.3,
					 15104.4, and Revenue and Taxation
					 Code Section
					 15104.5.
Note: Reference: Section
						15103,
						Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 2 - Gift Tax › Article 1 - Definitions › Section 15103.9 - Future Interest

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The term "future interest" includes a remainder of other
					 estate or interest in property, whether vested or contingent, the right to the
					 use, possession, or enjoyment of which is limited to commence at, or is
					 postponed to, some future date or time.
Note: As to the exclusion of future interests from the
					 annual exemption, see Revenue and Taxation Code Section
					 15402.
Note: Reference: Section
						15103,
						Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 2 - Gift Tax › Article 1 - Definitions › Section 15103.10 - Tax-Exempt Securities

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Inasmuch as the gift tax is a tax upon the privilege of
					 transferring property by gift, and not upon the subject of the gift, tax-exempt
					 federal, state, or municipal bonds or other evidences of indebtedness are
					 subject to the Gift Tax Law.
Note: Reference: Section
						15103,
						Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 2 - Gift Tax › Article 1 - Definitions › Section 15104 - Transfers-in General

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The Gift Tax Law ordinarily reaches every transfer of
					 property made after 10 p.m. of June 21, 1939, by an individual resident or
					 nonresident without an adequate and full consideration in money or money's
					 worth, to the extent that the transfer is within this State's taxing
					 jurisdiction. A transfer may be made in trust or otherwise, may be direct or
					 indirect, and may relate to property which is real or personal, tangible or
					 intangible.
Note: Reference: Section
						15104,
						Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 2 - Gift Tax › Article 1 - Definitions › Section 15104.1 - Cessation of Donor's Dominion or Control

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
One of the principal elements in a transfer subject to the
					 Gift Tax Law is the complete divestment of the donor's control over the
					 property transferred. If the donor so parts with his dominion and control over
					 the property as to leave him no power to cause the beneficial title to be
					 revested in himself, the transfer is complete. But a transfer, though passing
					 both legal and beneficial title, is still in essence merely formal so long as
					 there remains in the donor a power to cause the revesting of the beneficial
					 title in himself, and the gift remains incomplete during the existence of the
					 power. The relinquishment or termination of the power is regarded as the event
					 which completes the transfer. The receipt of income from the transferred
					 property by the donee during the interim between the formal making of the
					 transfer and the relinquishment or termination of the power operates to free
					 such income from the donor's power to receive it himself, and constitutes a
					 gift of such income in the year of its receipt.
A possibility of reverter does not in and of itself
					 constitute a retention of dominion and control. When a transfer is made
					 involving such a possibility, the tax is computed as though the transfer were
					 made subject to a condition or contingency (see Section
					 15210).
Note: Reference: Sections
						15104
						and
						15105,
						Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 2 - Gift Tax › Article 1 - Definitions › Section 15104.2 - Transfer of Community Property into Joint Tenancy, or Vice Versa

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A transfer or conversion of community property into a joint
					 tenancy between the spouses does not constitute a gift. The same is true as to
					 a transfer or conversion of joint tenancy property owned by a husband and wife
					 into their community where both spouses made equal contributions to the joint
					 tenancy.
Where there are unequal contributions made to real property
					 held by a husband and wife in joint tenancy, created on or after September 11,
					 1957 and before January 1, 1981, see Sections
					 15104.50 and
					 15104.51.
1. Amendment
					 filed 7-2-81; effective thirtieth day thereafter (Register 81, No.
					 27).
Note: Authority cited: Section
						16506,
						Revenue and Taxation Code. Reference: Section
						15104,
						Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 2 - Gift Tax › Article 1 - Definitions › Section 15104.4 - Transfer of Joint Tenancy Property to Third Person

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
It is assumed in this regulation that the transfers were
					 not made for an adequate and full consideration in money or money's
					 worth.
(a) Joint Bank Account. A
				  transfer of a joint bank or similar account by the joint tenants to a third
				  person constitutes a gift from each tenant to the extent of, or in proportion
				  to, his contribution to the account.
If a joint bank or similar account is created with
					 community property each spouse contributes one-half of such
					 property.
(b) Joint U. S.
				  Savings Bond. A transfer of a joint United States savings bond by the joint
				  tenants to a third person constitutes a gift from each tenant to the extent of,
				  or in proportion to, his contribution for the bond.
If a joint United States savings bond is purchased with
					 community property each spouse contributes one-half of such
					 property.
(c) Joint Tenancy
				  Other Than Bank Account, U. S. Savings Bond, or Real Property Owned by Husband
				  and Wife. A transfer of joint tenancy property, other than a joint bank or
				  similar account, a joint United States savings bond, or real property owned by
				  a husband and wife in a joint tenancy created on or after September 11, 1957,
				  to a third person constitutes a gift of one-half of such property by each joint
				  tenant.
Note: For a transfer to a third person of real property
					 owned by a husband and wife in a joint tenancy created on or after September
					 11, 1957, see Section
					 15104.50.
Note: Reference: Section
						15104,
						Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 2 - Gift Tax › Article 1 - Definitions › Section 15104.5 - Release of Debt

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
If A owes B a sum of money, and B without an adequate and
					 full consideration in money or money's worth releases A from the obligation to
					 repay it, the release constitutes a gift to A.
NOTE: Reference: Section
					 15104,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 2 - Gift Tax › Article 1 - Definitions › Section 15104.6 - Permitting Statute of Limitations to Run on Obligation

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
If A lends money to B, and then with donative intent
					 permits the statute of limitations to run against his right to recover in an
					 action at law upon the obligation, a gift to B occurs when the statute of
					 limitations has run.
NOTE: Reference: Section
					 15104,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 2 - Gift Tax › Article 1 - Definitions › Section 15104.7 - Transfer of Corporate Property

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A transfer of property by a corporation to A not made for
					 an adequate and full consideration in money or money's worth is a gift to the
					 latter from the stockholders or members of the corporation in proportion to
					 their respective interests, except where A himself is a stockholder or member
					 of the corporation and the transfer is a distribution to him as such from
					 earnings or as a result of a liquidation.
NOTE: Reference: Section
					 15104,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 2 - Gift Tax › Article 1 - Definitions › Section 15104.8 - Transfers in Trust

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
It is assumed in this regulation that the transfers were
					 not made for an adequate and full consideration in money or money's
					 worth.
(a) An irrevocable transfer of
				  property from A to B in trust for the beneficial use of C will ordinarily
				  constitute a gift from A to C. Subsequent transfers or additions to the trust
				  corpus by A will likewise ordinarily constitute gifts from A to C.
(b) A transfer of property from A to B in
				  trust for the beneficial use of A does not constitute a gift. However, the
				  payment of the income from the property to a person other than A constitutes a
				  gift.
(c) A transfer of property
				  from A to B in trust for the beneficial use of A during his life, upon the
				  termination of which the property is to go to C, constitutes a gift of a
				  remainder to C.
(d) A transfer of
				  property from A to B in trust for the beneficial use of C does not constitute a
				  gift if A reserves the power either to designate a new beneficiary other than
				  himself, or to modify or alter the disposition in any way not beneficial to
				  himself, even though he may in all other respects have surrendered his dominion
				  and control over the property. A gift will occur, however, if A should
				  relinquish the power during his lifetime.
(e) A transfer of property from A to B in
				  trust for the beneficial use of C without reservation, except to the extent
				  that if C should predecease A the property will revert to the latter,
				  constitutes a gift from A to C. The tax in such case is computed as though the
				  transfer were made subject to a contingency or condition (see Section
				  15210).
Note: As to a transfer of property in trust where power to
					 revest in the donor title to the property is vested in the donor, either alone
					 or in conjunction with others, see Revenue and Taxation Code Section
					 15105.
NOTE: Reference: Section
					 15104,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 2 - Gift Tax › Article 1 - Definitions › Section 15104.9 - Life Insurance

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
It is assumed in this regulation that the transfers were
					 not made for an adequate and full consideration in money or money's
					 worth.
(a) If A assigns an insurance
				  policy on his life to B without retaining any of the legal incidents of
				  ownership (as, for example, the right to surrender or cancel the policy, the
				  right to obtain a loan against the policy, the right to its surrender value, or
				  a right to change the beneficiary or assignee, if by the exercise of the latter
				  right the proceeds of the policy might be made payable to A, his estate, his
				  administrator, or his executor), such assignment constitutes a gift from A to
				  B.
(b) If A designates a
				  beneficiary to whom the proceeds of a policy on his life are to be paid,
				  without retaining any of the legal incidents of ownership in the policy, the
				  designation constitutes a gift from A to the person designated.
(c) If A makes an irrevocable gift of a
				  policy, whether by a method noted in subdivisions (a) and (b) or otherwise, and
				  thereafter pays the premiums thereon, each premium payment is a gift in the
				  amount thereof.
(d) If A is the
				  owner of a policy insuring the life of B in which C is the named beneficiary,
				  the payment of insurance proceeds to C, upon B's death, constitutes a gift from
				  A to C.
Note: For valuation of gifts of life insurance, see
					 Sections 15558,
					 15558.1, and
					 15558.2.
NOTE: Reference: Section
					 15104,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 2 - Gift Tax › Article 1 - Definitions › Section 15104.10 - Purchase of Annuity

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A transfer of property from A to B pursuant to an agreement
					 under which B is to pay an annuity to C may constitute a gift from A to
					 C.
NOTE: Reference: Section
					 15104,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 2 - Gift Tax › Article 1 - Definitions › Section 15104.11 - Transfer for Rendition of Service to Third Person

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A transfer from A to B in consideration for a service to be
					 rendered by B to C may constitute a gift from A to C, or both to B and C,
					 depending on whether the service to be rendered is or is not adequate and full
					 consideration in money or money's worth for that which is received by B.
NOTE: Reference: Section
					 15104,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 2 - Gift Tax › Article 1 - Definitions › Section 15104.12 - Transfers by or to Children

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The Gift Tax Law extends to any transfer
				  by a minor child of property which he is legally competent to
				  transfer.
(b) Since the earnings of
				  an unemancipated minor child usually belong to his parents, the payment of the
				  same to the parents by the child or his employer will not ordinarily constitute
				  a gift. On the other hand, the payment of an emancipated minor child's earnings
				  to his parents for whose support he is not legally liable will ordinarily
				  constitute a gift.
(c) If the
				  earnings of an unemancipated minor child are given, transferred, or released
				  to, or are placed in a trust fund for the benefit of, such child by or with the
				  consent of the parents, the amount so given, transferred, released, or placed
				  in trust constitutes a gift to the child from the parents. However, if a
				  portion of the earnings of an unemancipated minor child are given, transferred,
				  or released to, or are placed in trust for the benefit of, such child by or
				  with the consent of the parents, with the purpose of discharging the parents'
				  legal obligation to support the child, and such portion of the child's earnings
				  is reasonably necessary for the child's maintenance, the transaction does not
				  constitute a gift.
(d) A transfer
				  of property or payment of funds by an adult child or an emancipated minor child
				  to or for his parents for whose support he is legally liable will not
				  constitute a gift if the property or funds are reasonably necessary for the
				  maintenance of the parents. However, the transfer or payment will constitute a
				  gift to the extent that the property or funds are not reasonably necessary for
				  the maintenance of the parents.
NOTE: Reference: Section
					 15104,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 2 - Gift Tax › Article 1 - Definitions › Section 15104.13 - Transfers by or for Mental Incompetents

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A transfer or payment without an adequate and full
					 consideration in money or money's worth pursuant to an order, decree, or
					 judgment of a court of law of property or funds owned by a mentally incompetent
					 person will be treated as a gift from the incompetent, unless the transfer or
					 payment is made for the maintenance of a person for whose support the
					 incompetent is legally responsible. If the transfer or payment is not made to a
					 person for whose support the incompetent is legally responsible, or is made to
					 such a person in an amount more than sufficient for his maintenance, the
					 transfer or payment, or the excess thereof over an amount reasonably necessary
					 for maintenance, constitutes a gift from the incompetent.
NOTE: Reference: Section
					 15104,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 2 - Gift Tax › Article 1 - Definitions › Section 15106 - Transfer for Inadequate Consideration

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A transfer of property for a valuable yet inadequate
					 consideration in terms of money or money's worth constitutes a gift of the
					 difference between the value of the property transferred and the value of the
					 consideration received. Thus, for example, A transfers property valued at
					 $10,000 to B in return for property valued at $5,000. The difference between
					 the values of the property, or $5,000, represents a gift from A to B. There
					 would be no gift in such case, however, if the transaction represented a bona
					 fide sale or exchange made in the ordinary course of business and was free from
					 donative intent.
Any consideration for a transfer not reducible to a money
					 value, such as love and affection or a promise of marriage, will be
					 disregarded, and the entire value of the property transferred will be treated
					 as the amount of the gift.
NOTE: Reference: Section
					 15106,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 2 - Gift Tax › Article 1 - Definitions › Section 15109 - Donee

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
For the purpose of the Gift Tax Law the term "donee" means
					 any individual or other person who receives, or is the beneficiary of, any
					 property, or any property right or interest, transferred by donor. Where a
					 trust is involved, the beneficiary, not the trustee, is the donee.
NOTE: Reference: Section
					 15109,
					 Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 2 - Gift Tax › Article 1 - Definitions › Section 15118 - "Net Gifts" Defined

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The term "net gifts," in respect to gifts made by a donor
					 to a particular donee during any calendar year, means the aggregate amount or
					 market value of all gifts made by the donor to the donee during a calendar year
					 after 10 p.m. of June 21, 1939, less the sum of the following:
(a) The annual exemption, if any.
(b) The amount of any gifts falling within
				  the charitable exemption, if any.
(c) The amount of any gifts falling within
				  the intangible exemption, if any.
Although the amount of the specific exemption is a
					 deductible item in determining the sum of net taxable gifts (see Revenue and
					 Taxation Code Section
					 15204),
					 it is to be observed that it is not deductible in ascertaining the amount of
					 "net gifts."
NOTE: Reference: Section
					 15118,
					 Revenue and Taxation Code.