- 10 - Section 2501(a)(1) imposes a tax on individuals who directly or indirectly transfer property by gift. See sec. 2511(a). In order for the transfer to be complete, however, the donor must surrender dominion and control of the property. See Estate of Sanford v. Commissioner, 308 U.S. 39 (1939); Burnet v. Guggenheim, 288 U.S. 280 (1933); sec. 25.2511–2(b), Gift Tax Regs. In evaluating whether a donor has made a gift, we look to the “objective facts of the transfer and the circumstances under which it is made,” sec. 25.2511–1(g)(1), Gift Tax Regs., bearing in mind that petitioner carries the burden of proof, see Rule 142(a). Petitioner advances four arguments as to why he is not subject to gift taxes. He first claims that JGA, a joint venture, owned all the leases, such that neither spouse could have given them to anyone without the other’s consent. He reasons further that, since the couple treated the mineral leases as jointly owned following his purported assignments, no gifts were made. Petitioner’s second argument rests on the premise that he and Mrs. Grynberg owned some of the mineral leases in community. He claims that he did not convert community into separate property when he assigned his one–half interest in the leases to 4(...continued) deduction to make interspousal transfers fully deductible, effective for tax years beginning after Dec. 31, 1981.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011