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erroneous. See Rule 142(a);4 Welch v. Helvering, 290 U.S. 111,
115 (1933).
Section 2001(a) provides that a tax is imposed on the
transfer of the taxable estate of every decedent who is a citizen
or resident of the United States. The tax imposed is equal to
the excess of a tentative tax computed on the sum of the taxable
estate and the adjusted taxable gifts over the aggregate amount
of tax that would have been payable with respect to gifts made by
the decedent after December 31, 1976, using the unified rate
schedule in effect at the date of death. See sec. 2001(b). The
term "adjusted taxable gifts" means the total amount of the
taxable gifts (within the meaning of section 2503) made by the
decedent after December 31, 1976, other than gifts which are
includable in the gross estate. See id.
In general, a tax is imposed for each calendar year on the
transfer of property by gift by any individual, whether the gift
is made directly or indirectly. See secs. 2501(a), 2511(a). The
term "taxable gifts" means the total amount of gifts made during
the calendar year, less certain deductions. See sec. 2503(a).
However, the first $10,000 of gifts of a present interest in
4Rule references are to the Tax Court Rules of Practice and
Procedure. All section references are to the Internal Revenue
Code in effect for the date of decedent's death, unless otherwise
indicated.
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Last modified: May 25, 2011