- 56 - husband's transfer of certain literary rights, in the absence of proof that the services were bargained for). As we have noted, the children's services were performed primarily with respect to their own land, and there is no evidence their services were bargained for. Therefore, we find that the children's services do not constitute consideration for purposes of the gift tax; they do not offset any use of decedent's income for the benefit of the children. 5. No Land Bank Loan Payments Were Decedent's Expenses Petitioner admits that 65 percent of the proceeds of the Land Bank loan was used to pay the taxes and administration expenses of Garry's estate. Petitioner further admits that under Garry's will the children were responsible for these payments. Petitioner claims that the remaining 35 percent of the loan proceeds was used to pay the expenses of the family farm. Because petitioner believes one-half of the farm expenses were decedent's expenses, petitioner claims that 17.5 percent of the loan proceeds was used to pay decedent's expenses. As a result, petitioner asserts that 17.5 percent of the Land Bank loan payments made during 1979-93 (approximately $276,000) should be considered to be decedent's expenses, the payment of which by decedent would not be a taxable gift. The evidence suggests that even more than 65 percent of the loan proceeds was used to pay the taxes and administrationPage: Previous 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 Next
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