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Penalty
Year Gift Tax Estate Tax Sec. 6662(a)
Elizabeth Winkler 1989 $58,596 -- $23,438
Estate of Emerson Winkler-- 58,596 -- 23,438
Estate of Emerson Winkler-- -- $294,333
Unless stated otherwise, all section references are to the
Internal Revenue Code as in effect during 1989 or at the
time of the decedent's death.
Respondent determined a gift tax deficiency in the
case of Mrs. Elizabeth Winkler based on a finding that
Mrs. Winkler made taxable gifts in 1989 of one-half of
the value of a winning lottery ticket. Respondent also
determined a gift tax deficiency in the case of her
deceased husband, Mr. Emerson Winkler, by reason of his
consent to split the gifts made by Mrs. Winkler pursuant
to section 2513(a). Due to the increase in Mr. Winkler's
lifetime taxable gifts, respondent also determined a
deficiency in estate tax in the case of the Estate of
Emerson Winkler.
The primary issue for decision is whether Mrs. Winkler
purchased a winning lottery ticket on her own behalf or on
the behalf of a family partnership. If we find that
Mrs. Winkler purchased the ticket on her own behalf, then
we must also determine whether the Estate of Emerson
Winkler is entitled to increase the marital deduction
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Last modified: May 25, 2011