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Procedure. All Rule references are to the Tax Court Rules of
Practice and Procedure.
Section 2501 imposes a tax on the transfer of property
by gift. Sec. 2501(a); sec. 25.2501-1(a), Gift Tax Regs.
The gift tax is an excise tax on the transfer of property
and is not a tax on the subject of the gift. Sec. 25.2511-
1(a), Gift Tax Regs. It applies to all gift transfers
whether the gift is direct or indirect, and whether the
property is real or personal, tangible or intangible. Sec.
2511(a); sec. 25.2511-1(a), Gift Tax Regs. It applies not
only to transfers which, being without valuable
consideration, accord with the common law concept of gifts,
but also to sales, exchanges, and other dispositions of
property not made in the ordinary course of business, to
the extent that the value of the property transferred by
the donor exceeds the value in money or money's worth of
the consideration given therefor. Sec. 2512(b);
Commissioner v. Wemyss, 324 U.S. 303, 306 (1945); sec.
25.2512-8, Gift Tax Regs.
Generally, the value of the property on the date
of the gift is considered the amount of the gift. Sec.
2512(a); sec. 25.2512-1, Gift Tax Regs. The value of
the property is the price at which it would change hands
between a willing buyer and a willing seller, neither
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