Subchapter A - Tax Imposed

26 USC 2601 - Tax imposed

A tax is hereby imposed on every generation-skipping transfer (within the meaning of subchapter B).

26 USC 2602 - Amount of tax

The amount of the tax imposed by section 2601 is

(1) the taxable amount (determined under subchapter C), multiplied by

(2) the applicable rate (determined under subchapter E).

26 USC 2603 - Liability for tax

(a) Personal liability

(1) Taxable distributions
In the case of a taxable distribution, the tax imposed by section 2601 shall be paid by the transferee.

(2) Taxable termination
In the case of a taxable termination or a direct skip from a trust, the tax shall be paid by the trustee.

(3) Direct skip
In the case of a direct skip (other than a direct skip from a trust), the tax shall be paid by the transferor.

(b) Source of tax
Unless otherwise directed pursuant to the governing instrument by specific reference to the tax imposed by this chapter, the tax imposed by this chapter on a generation-skipping transfer shall be charged to the property constituting such transfer.

(c) Cross reference
For provisions making estate and gift tax provisions with respect to transferee liability, liens, and related matters applicable to the tax imposed by section 2601, see section 2661.

26 USC 2604 - Credit for certain State taxes

(a) General rule
If a generation-skipping transfer (other than a direct skip) occurs at the same time as and as a result of the death of an individual, a credit against the tax imposed by section 2601 shall be allowed in an amount equal to the generation-skipping transfer tax actually paid to any State in respect to any property included in the generation-skipping transfer.

(b) Limitation
The aggregate amount allowed as a credit under this section with respect to any transfer shall not exceed 5 percent of the amount of the tax imposed by section 2601 on such transfer.