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Section 2501(a)(1) imposes a tax on individuals who directly
or indirectly transfer property by gift. See sec. 2511(a). In
order for the transfer to be complete, however, the donor must
surrender dominion and control of the property. See Estate of
Sanford v. Commissioner, 308 U.S. 39 (1939); Burnet v.
Guggenheim, 288 U.S. 280 (1933); sec. 25.2511–2(b), Gift Tax
Regs. In evaluating whether a donor has made a gift, we look to
the “objective facts of the transfer and the circumstances under
which it is made,” sec. 25.2511–1(g)(1), Gift Tax Regs., bearing
in mind that petitioner carries the burden of proof, see Rule
142(a).
Petitioner advances four arguments as to why he is not
subject to gift taxes. He first claims that JGA, a joint
venture, owned all the leases, such that neither spouse could
have given them to anyone without the other’s consent. He
reasons further that, since the couple treated the mineral leases
as jointly owned following his purported assignments, no gifts
were made.
Petitioner’s second argument rests on the premise that he
and Mrs. Grynberg owned some of the mineral leases in community.
He claims that he did not convert community into separate
property when he assigned his one–half interest in the leases to
4(...continued)
deduction to make interspousal transfers fully deductible,
effective for tax years beginning after Dec. 31, 1981.
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Last modified: May 25, 2011