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MEMORANDUM OPINION
LARO, Judge: Petitioner moves for summary adjudication
under Rule 121(a),2 arguing that the Court may enter a decision
in its favor as a matter of law. Respondent objects thereto,
arguing that the Court must still decide questions of material
fact in order to decide this case. We agree with respondent. We
will deny petitioner's motion. This case is not ripe for summary
adjudication because material facts remain in dispute.
Background
While residing in Honolulu, Hawaii, Mary D. Maggos (Ms.
Maggos) petitioned the Court on September 27, 1993, to
redetermine respondent's determination of a $2,229,350 deficiency
in her 1987 Federal gift tax. Respondent determined that Ms.
Maggos' sale of 56.7 percent of the outstanding stock of
Pepsi-Cola Alton Bottling, Inc. (PCAB), to PCAB in exchange for a
$3 million promissory note was a transfer for less than adequate
and full consideration. Respondent determined that the fair
market value of the transferred stock was $8,056,000 on the date
of transfer and, accordingly, that Ms. Maggos had made a gift of
$5,056,000 to her son, Nikita Maggos, who was PCAB's sole
remaining shareholder. Ms. Maggos had filed a 1987 Federal gift
2 Rule references are to the Tax Court Rules of Practice and
Procedure. Unless otherwise indicated, section references are to
the Internal Revenue Code in effect for the year in issue.
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Last modified: May 25, 2011