### Question
How is the "nontaxable gift" defined?


### Answer
The term **nontaxable gift** is defined in *26 U.S.C. § 2642* as follows -

> any transfer of property to the extent such transfer is not treated as a taxable gift by reason of—



(A) section 2503(b) (taking into account the application of section 2513), or



(B) section 2503(e)

#### Citation:
  - *26 U.S.C. § 2642*
  - Heading: **Subtitle B-Estate and Gift Taxes > CHAPTER 13-TAX ON GENERATION-SKIPPING TRANSFERS > Subchapter E-Applicable Rate; Inclusion Ratio**

