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testimonial evidence presented by petitioners to sustain their
burden of establishing error in respondent's determinations. See
Lerch v. Commissioner, 877 F.2d 624, 631-632 (7th Cir. 1989),
affg. T.C. Memo. 1987-295; Geiger v. Commissioner, 440 F.2d 688,
689-690 (9th Cir. 1971), affg. per curiam T.C. Memo. 1969-159;
Tokarski v. Commissioner, 87 T.C. 74, 77 (1986). With respect to
the documentary evidence, certain documents in the record
contradict other documents and/or testimony. Under such
circumstances, we are not required to, and we do not, rely on the
documentary evidence presented by petitioners to sustain their
burden of showing error in respondent's determinations.
Section 2501(a)(1) generally imposes a tax for each calendar
year on the transfer of property by gift during such year by an
individual. Although the Code does not explicitly define what
constitutes a gift for purposes of section 2501(a)(1), section
2512(b) provides: "Where property is transferred for less than
an adequate and full consideration in money or money's worth,
then the amount by which the value of the property exceeded the
value of the consideration shall be deemed a gift". Section
25.2511-1(g)(1), Gift Tax Regs., provides in pertinent part:
Donative intent on the part of the transferor is not an
essential element in the application of the gift tax to
the transfer. The application of the tax is based on
the objective facts of the transfer and the circumstan-
ces under which it is made, rather than on the subjec-
tive motives of the donor. * * * The gift tax is not
applicable to a transfer for a full and adequate con-
sideration in money or money's worth, or to ordinary
business transactions, described in �25.2512-8.
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