Jack J. Grynberg - Page 18




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          lis pendens on the underlying leases.  To support his position,                
          each party proffered the testimony of expert witnesses.                        
               We will not, however, decide the value of the overrides for               
          gift tax purposes.  In this case, any gift tax payable on                      
          petitioner’s overriding royalty assignments would be fully                     
          absorbed by his unified credit, as petitioner made no taxable                  
          gifts prior to the ones he concedes here.8  Accordingly, whether               
          the value of petitioner’s gifts is $50,412, as respondent                      
          contends, or zero, as petitioner contends, the result is the                   
          same:  the deficiency as redetermined for the quarters in issue                
          is zero.                                                                       
               Although the correct value of the overrides continues to                  
          divide the parties and may be the subject of future litigation,                
          this issue has absolutely no impact on the years before us.  Our               
          decision of no deficiency will be the same in any event.  Indeed,              
          as the Court has previously noted:  “A decision of no deficiency               
          * * * provides a complete victory for petitioner; a continuation               
          of the proceedings ‘cannot affect the result as to the thing in                
          issue’ * * * and can add nothing other than an advisory opinion”.              


               8The Tax Reform Act of 1976, Pub. L. 94–455, sec.                         
          2001(b)(3), 90 Stat. 1849, created the unified credit which                    
          applies directly against estate and gift taxes.  See secs.                     
          2010(a), 2505(a).                                                              
               The credit amount in 1980 was $42,500, offsetting $161,563                
          of taxable transfers.  See secs. 2001(c), 2502(a), 2505(b).                    
          Under a phase–in schedule, the credit increased to $47,000 in                  
          1981.  See sec. 2505(a) and (b).                                               





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