Spousal Exclusion Under Section 2801

Offshore Tax with HTJ.tax · Apr 9, 2026 · 1m

Section 2801 of the Internal Revenue Code imposes tax on certain gifts and inheritances received from covered expatriates. However, an important exception exists for transfers between spouses—based on principles similar to the U.S. marital deduction.💍 1️⃣ The Spousal Exclusion RuleTransfers to a spouse are generally excluded from §2801 taxation.Why?• §2801 incorporates principles similar to the marital deduction under:Internal Revenue Code §2523Internal Revenue Code §2056👉 If the transfer would have qualified for the marital deduction had the expatriate remained a U.S. citizen:• It is…