Julian P. Kornfeld - Page 10

                                                 - 10 -                                                   
                  Finally, petitioner relies heavily on cases involving what                              
            he claims to be analogous transactions, especially those dealing                              
            with gifts of stock to a charity followed by a redemption of such                             
            stock by the corporation.  We dealt at some length with these                                 
            cases and cases involving seemingly analogous situations in                                   
            Gordon v. Commissioner, 85 T.C. at 327, and concluded that such                               
            cases "are sufficiently distinguishable in terms of their factual                             
            context and the issue involved so as not to furnish any                                       
            significant guidance to our decision herein."  We continue to                                 
            adhere to that view.                                                                          
                  Petitioner attaches great significance to the fact that gift                            
            tax returns were filed in respect of all the funds provided by                                
            petitioner, whereas in Gordon v. Commissioner, supra, most of the                             
            transfers of funds by the taxpayer to the holder of the remainder                             
            interest were not reflected in any gift tax returns.  We are not                              
            persuaded that this provides a significant basis for                                          
            distinguishing Gordon.  Such returns merely reflect the values of                             
            the gifts8 to the recipients which happen to coincide with the                                
            amounts of the funds transferred.  Although the gift tax returns                              
            stated that the gifts were cash gifts, such self-serving labeling                             
            is not determinative and its impact is not significant in light                               


            7(...continued)                                                                               
            to the holder of the remainder but not used was a factor                                      
            unfavorable to the taxpayer's position.                                                       
            8  See supra note 3.                                                                          




Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  Next

Last modified: May 25, 2011