-2-
accuracy-related penalty of $77,615 pursuant to section 6662.1
After concessions,2 the issues for decision are: (1)
Whether decedent transferred the life estate she held in a house
when she attempted to convey fractional fee simple interests to
her children as gifts in 1984, 1985, and 1986. We hold she did.
(2) Whether the 12 $10,000 annual gifts decedent made in each of
the years 1985 through 1988 were transfers of present interests
that qualify for the exclusion under section 2503(b). We hold
they are completed transfers of present interests that may be
excluded from decedent's taxable gifts, as set out below. (3)
Whether 12 checks decedent wrote and delivered to her agent 4
days before she died were completed gifts, or in the alternative
claims against the estate that may be deducted under section
2053(a)(3). We hold they are neither completed gifts nor claims
against the estate. (4) Whether decedent had an enforceable,
personal obligation to repay two transfers of $50,000 that she
received from the J. Kurt Holland Residual Trust so that $100,000
1 All section references are to the Internal Revenue Code
in effect as of the date of decedent's death, and all Rule
references are to the Tax Court Rules of Practice and Procedure,
unless otherwise indicated. All dollar amounts are rounded to
the nearest dollar, unless otherwise indicated.
2 Petitioner deducted $61,081 on Schedule L, Form 706, as
an expense of administering decedent's interest in a condominium.
Prior to trial, petitioner conceded that $40,580 of these
expenses were not allowable; the remaining amount, $20,501, is at
issue.
Respondent determined that the value of decedent's interest
in the condominium at the date of her death was $500,000. Prior
to trial, respondent conceded that the value was only $300,000.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011