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decedent’s right of subrogation, held proper where decedent
guaranteed secured debt; property securing debt was distributed
to decedent's son (the primary debtor) by the estate, subject to
the mortgage; and the giving of the guaranty was not a gift).
III. Unused Exclusions Available as Conceded in Respondent's
Brief; Offset and Deduction for Gift Taxes Payable
Respondent admits that decedent's gifts of farm land during
1979-93 did not consume all of decedent's annual gift tax
exclusions for gifts to the children. Accordingly, on brief
respondent has conceded that in determining the taxable gifts
made by decedent, the amounts of unused exclusion shown in the
table in our findings of fact, see supra pp. 10-11, should be
taken into account.
By contrast, petitioner contends that the exclusions
available should be twice the amounts shown in the table.
Petitioner apparently believes that if any additional gifts were
made by decedent, they were made to six donees (presumably, to
the children and their spouses) rather than to three.
Petitioner has offered no evidence that decedent intended to
give anything other than the family farm land to the children's
spouses. Moreover, the assertion that the investment income at
issue herein was transferred to anyone other than the children is
totally inconsistent with petitioner's primary argument, which is
that all amounts at issue were consumed by a bona fide business
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