-12- Commissioner, 8 T.C. 706, 720 (1947); sec. 25.2512-8, Gift Tax Regs.4 Decedent's estate bears the burden of proving that decedent's transfers to petitioner of undivided interests in timberland in 1980 and 1983 were not taxable gifts. Rule 142(a). Petitioners argue that decedent had good business reasons for making the transfers. Petitioners point out that petitioner had worked for decedent since the early 1960's without compensation, except for his share of profits (and $50 per week in the first year), and that decedent could not have managed her property without petitioner's help. We disagree that this shows that the transfers were not gifts. 4 Sec. 25.2512-8, Gift Tax Regs., provides: SEC. 25.2512-8, Transfers for insufficient consideration. Transfers reached by the gift tax are not confined to those only which, being without a valuable consideration, accord with the common law concept of gifts, but embrace as well sales, exchanges, and other dispositions of property for a consideration 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. However, a sale, exchange, or other transfer of property made in the ordinary course of business (a transaction which is bona fide, at arm's length, and free from any donative intent), will be considered as made for an adequate and full consideration in money or money's worth. A consideration not reducible to a value in money or money's worth, as love and affection, promise of marriage, etc., is to be wholly disregarded, and the entire value of the property transferred constitutes the amount of the gift. * * *Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Next
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