-12-
Commissioner, 8 T.C. 706, 720 (1947); sec. 25.2512-8, Gift Tax
Regs.4 Decedent's estate bears the burden of proving that
decedent's transfers to petitioner of undivided interests in
timberland in 1980 and 1983 were not taxable gifts. Rule 142(a).
Petitioners argue that decedent had good business reasons
for making the transfers. Petitioners point out that petitioner
had worked for decedent since the early 1960's without
compensation, except for his share of profits (and $50 per week
in the first year), and that decedent could not have managed her
property without petitioner's help. We disagree that this shows
that the transfers were not gifts.
4 Sec. 25.2512-8, Gift Tax Regs., provides:
SEC. 25.2512-8, Transfers for insufficient consideration.
Transfers reached by the gift tax are not confined to
those only which, being without a valuable consideration,
accord with the common law concept of gifts, but embrace as
well sales, exchanges, and other dispositions of property
for a consideration to the extent that the value of the
property transferred by the donor exceeds the value in money
or money's worth of the consideration given therefor.
However, a sale, exchange, or other transfer of property
made in the ordinary course of business (a transaction which
is bona fide, at arm's length, and free from any donative
intent), will be considered as made for an adequate and full
consideration in money or money's worth. A consideration
not reducible to a value in money or money's worth, as love
and affection, promise of marriage, etc., is to be wholly
disregarded, and the entire value of the property
transferred constitutes the amount of the gift. * * *
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