1 Net gift classes are based on the amount of net gifts for the curent year. Nontaxable returns without net gifts are designated "No net gifts."

2 Gifts of taxpayer reported by spouse are amounts deducted from the total gifts of the taxpayer and reported by the taxpayer's spouse on a separate return as provided under the Code. Under this provision, gifts made by one spouse to third parties may be considered as made one-half by each spouse if both husband and wife signify their consent.

* Gifts of spouse reported by taxpayer are amounts transferred from the return of the taxpayer's spouse as a result of the consent by both husband and wife to divide equally between them gifts made to third parties, as provided under the Code.

• Exclusions from total gifts are the first $3,000 of gifts (other than gifts of future interests) made to any one donee, including charitable donees. In case of a consent to divide gifts between husband and wife, each spouse is allowed an exclusion against his half of the gift to a common donee.

'Deduction for charitable, public, and similar gifts is the value of such gifts in excess of the exclusion allowed for each charitable donee and previously deducted from total gifts.

'Marital deduction for gifts made to the taxpayer's spouse is allowed citizen and resident donors to the extent of one-half the value of property interests which qualify for the deduction, but is allowed only to the extent that such gifts are included in total gifts after the exclusion relating thereto.

Specific exemption of $30,000 less the sum of amounts allowed in prior years is allowed each resident or citizen donor. At the option of the donor, this exemption may be taken in a single year or spread over a period of years until exhausted.

'Net gifts for prior years (subsequent to June 6, 1932), reported in schedule B for the purpose of computing the current year gift

tax, may exceed net gifts actually reported in prior years for the reason that, when a specific exemption of more than $30,000 was taken before 1943 (when a larger exemption was allowable), the net gifts for prior years as reported in this schedule are increased by an amount equal to the exemption taken in excess of $30,000. ⚫ Gift tax for prior years (subsequent to June 6, 1932) is tabulated from item 5, schedule for computation of tax, page 1, of the current year return. This tax on net gifts for prior years may not be the actual tax liability reported in those years because it is a tax computed at current year rates, on the net gifts for prior years as adjusted in schedule B (explained in note 8).

10 The amounts of net gifts and of gift tax for prior years, tabulated (as indicated in notes 8 and 9) for nontaxable returns, probably are understated because schedule B is not always complete on nontaxable returns.

11 Total gift plus gift tax classes are based on the sum of the current year total gifts before exclusions (that is, after division of gifts between spouses) and the current year gift tax. Nontaxable returns have no gift tax, but are distributed under this classification on the basis of total gifts before exclusions.

12 Less than $500.

13 Identical donors are individuals whose current year returns show that they made gifts to donees other than charitable, public, and similar organizations in 1951 and also in prior years (subsequent to June 6, 1932). If husband and wife consent to divide between them gifts made to third parties, each is considered a donor of his or her respective total gifts before exclusions, the amount of which include the adjustments resulting from the division of gifts between spouses.

14 Net gift for prior years classes are based on the aggregate net gifts for prior years (subsequent to June 6, 1932) as reported in schedule B on the current year return. Net gifts for prior years are adjusted in this schedule as explained in note 8.