Estate of Gordon B. McLendon, Deceased, Gordon R. McLendon, Jr., Independent Executor - Page 3

                                        - 3 -                                         

          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            





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

Last modified: May 25, 2011