- 11 -
were arm’s-length sales of Huber shares that could be used to
determine the values of the gifts made by petitioners.
OPINION
I. Burden of Proof
Respondent argues that under section 7491(a), the burden of
proof does not shift to respondent but remains with petitioners.
We do not reach this issue because we find that the outcome of
this case is determined on the preponderance of the evidence and
is unaffected by section 7491. See Estate of Bongard v.
Commissioner, 124 T.C. 95, 111 (2005) (citing Blodgett v.
Commissioner, 394 F.3d 1030, 1035 (8th Cir. 2005), affg. T.C.
Memo. 2003-212); Estate of Stone v. Commissioner, T.C. Memo.
2003-309).
II. Arm’s-Length Quality of Huber Stock Sales
Section 2501 imposes a tax on the transfer of property by
gift during the taxable year. This tax is imposed whether the
transfer is in trust or otherwise and whether the gift is direct
or indirect. Sec. 2511. A gift of property is valued as of the
date of the transfer. Sec. 2512(a). The gift is measured by the
value of the property passing from the donor, rather than by the
value of the property received by the donee or upon the measure
of enrichment to the donee. See sec. 25.2511-2(a), Gift Tax
Regs.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011