Estate of Max L. Van Tine, Deceased, Ann Van Tine, Executor - Page 18

                                       - 18 -                                         
          without published opinion 673 F.2d 1310 (4th Cir. 1982).  Thus,             
          to exclude 50 percent of the date-of-death value of the three               
          properties at issue from decedent's estate, petitioner must prove           
          that Ann Van Tine's services to VTC were worth at least 50                  
          percent of the total consideration paid for the acquisition and             
          improvement of three properties.                                            
               Under section 2040(a), a surviving family member may give              
          consideration by providing services to a family business.                   
          Berkowitz v. Commissioner, 108 F.2d 319 (3d Cir. 1939), revg. and           
          remanding a Memorandum Opinion of the Board of Tax Appeals;                 
          Richardson v. Helvering, 80 F.2d 548, 551 (D.C. Cir. 1935).                 
          Petitioner bears the burden of proof.  Rule 142(a); see Estate of           
          Heidt v. Commissioner, 8 T.C. 969, 974 (1947), affd. per curiam             
          170 F.2d 1021 (9th Cir. 1948).                                              
          B.   Whether Ann Van Tine Provided Substantial Services to Her              
               Parents and VTC                                                        
               1.   Parties' Contentions                                              
               The parties dispute whether Ann Van Tine provided                      
          substantial services to VTC.  Petitioner contends that Ann Van              
          Tine worked full time for VTC for more than 30 years and that her           
          work was full and adequate consideration for her one-half                   
          interest in the three properties at issue.  Respondent contends             










Page:  Previous  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  Next

Last modified: May 25, 2011