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are described in our prior Memorandum Opinion, and we see no need
to recite them here.
Respondent determined a deficiency in petitioner's Federal
gift tax after concluding that decedent did not receive full and
adequate consideration for the remainder interest that he
transferred pursuant to the private annuity agreement. In
particular, respondent determined that petitioner: (1)
Understated the value of the assets that were the subject of the
private annuity agreement; and (2) erred in relying on section
25.2512-5(f) (Table A), Gift Tax Regs., to compute the value of
the remainder interest transferred pursuant to the private
annuity agreement. Consequently, respondent maintains that the
private annuity agreement resulted in a transfer that was in part
a sale and in part a gift.
After concessions by both parties, the dispute concerning
the value of the assets that were the subject of the private
annuity agreement was narrowed at trial to the question of
whether property interests in two general partnerships that
decedent transferred pursuant to the private annuity agreement
should be valued as general partnership interests or as assignee
interests in the two general partnerships. An additional
contested issue concerned respondent's determination that
petitioner erred in relying on the actuarial tables found in
section 25.2512-5(f) (Table A), Gift Tax Regs., in computing the
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