105 T.C. No. 18
UNITED STATES TAX COURT
ESTATE OF ROSE D'AMBROSIO, DECEASED, VITA D'AMBROSIO, EXECUTRIX,
Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 6724-94. Filed September 25, 1995.
D transferred her remainder interest in stock for
consideration equal to the value of that interest, and
retained an income interest in the stock for life.
Following D's death, E did not include the stock in D's
gross estate for Federal estate tax purposes. E argues
that the stock is excludable from D's gross estate
under the bona fide sale exception of sec. 2036(a),
I.R.C., given the fact that D transferred the remainder
interest for its fair market value. Held: D's gross
estate includes the value of the stock at D's death,
less the amount that D received for the remainder
interest. The bona fide sale exception of sec.
2036(a), I.R.C., is inapplicable to the facts at hand.
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