Gifts of taxpayer reported by spouse are amounts deducted from the total gifts of the taxpayer and reported by the taxpayer's spouse as provided under the 1948 act. This act provides that gifts made alter April 2, 1948, by one spouse to third parties may be considered as made one-half by each spouse pro vided that 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 after April 2, 1948, as provided under the 1948 act.

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 consent to divide gifts between husband and wife, an exclusion is available to each spouse.

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

Marital deduction for gifts made to the taxpayer's spouse after April 2, 1948, allowed citizens and residents, to the extent of one half the value of property interests which qualify for the deduction, but 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 claimed and allowed in prior years is allowed each resident or citizen donor. At the option of the donor, the 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,

gifts actually reported in prior years, for the reason that when a specific exemption of more than $30,000 was taken prior to 1943 (when a larger exemption was allowable), the aggregate 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 aggregate net gifts for prior years adjusted as explained in note 8.

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

returns.

of current year total gifts before exclusions and the "Total gift plus tax classes are based on the sum current year gift tax.

12 Total gift classes are based on the amount of current year total gifts before exclusions.

"Identical donors are individuals whose current year return shows that they made gifts to donees other than charitable, public, and similar organizations in 1948 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 includes gifts transferred from the other spouse.

14 Net gift for prior years classes are based on the aggregate net gifts for prior years (subsequent to June 6, 1932), as adjusted in schedule B on the current year return, to include the amount in excess of of $30,000 specific exemption taken prior to 1943