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estate tax was to be determined by applying the unified rate
schedule to the aggregate of cumulative transfers during life and
at death and then subtracting the gift taxes payable on the
lifetime transfers. General Explanation, supra.
The Joint Committee explanation indicates that Congress
intended that the transfer tax for the same amount of property
should be the same whether the property was transferred by gift
or at death. There is nothing to suggest that Congress intended
to ignore changes in the value of property that were brought
about by death. In the instant case, the value of property
transferred would depend on whether the stock was donated before
death or whether the stock passed to the estate at the moment of
death, since the nature of the property changed at the moment of
death. The unified gift and estate transfer tax system was not,
we believe, intended to affect the question of value for transfer
tax purposes, whether the tax in question were to be the gift tax
or the estate tax. We consequently cannot accept petitioner's
argument to the contrary.
To reflect the foregoing, and concessions,
Decision will be entered
under Rule 155.
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