- 4 - the estate tax return failed to reflect certain taxable gifts that Hilda had previously reported. In 1990, when Hilda reported on a gift tax return her share of the $300,000 transfer (i.e., $130,000), she listed prior taxable gifts of $480,000 (i.e., the amount she reported transferring in 1989). In fact, Hilda had previously reported taxable gifts of $610,488.44, as shown in the following chart: Date Taxable Gifts March 1976 $5,988.44 December 1976 10,500.00 September 1979 34,000.00 December 1979 80,000.00 1989 480,000.00 Total 610,488.44 Respondent has proposed an adjustment to prior taxable gifts of $130,488 (i.e., $610,488 minus $480,000). This adjustment would have the effect of increasing Hilda’s 1990 gift tax liability by $23,029 and the estate tax liability by $47,061. Petitioner has conceded that Hilda omitted $130,488 in prior taxable gifts that should have been included on her 1990 gift tax return and on the estate tax return. Petitioner contends, however, that the characterization of the 1986 transaction as a sale and of the September 24, 1990, transaction as a gift were in error. OPINION Petitioner contends that James and Hilda should not be treated as having transferred the House to David and Billie JeanPage: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011