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

(a) The tax provided for in this part shall be computed upon net gifts made during the calendar year.
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Terms Used In Tennessee Code 67-8-103

  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
  • Property: includes both personal and real property. See Tennessee Code 1-3-105
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
  • United States: includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
  • Year: means a calendar year, unless otherwise expressed. See Tennessee Code 1-3-105
(b) For the purposes of this part, “net gifts” means the total amount of gifts made during such year, less the value of all property transferred to the United States, the state of Tennessee, or to any political subdivision thereof, any public institution therein for exclusively public purposes, or any corporation, society, association or trust therein, or in a state that grants a like exemption to such institutions in Tennessee, formed for charitable, educational, scientific, or religious purposes; provided, that the property so transferred is to be used exclusively for one (1) or more of such purposes.
(c) No deduction shall be allowed on account of property transferred to any such beneficiary, if any officer, member, shareholder or employee thereof shall receive, or be entitled to receive, any benefit or pecuniary profit from the operation thereof, except reasonable compensation in effecting one (1) or more of such purposes, or as beneficiaries of a strictly charitable purpose; or if the organization of any such corporation, society, association, or trust for any of the foregoing avowed purposes be a mere guise or pretense for directly or indirectly making for it or any of its officers, members, shareholders or employees any other pecuniary profit; or if it be not in good faith organized or conducted for one (1) or more of such purposes.
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