R. Paul Kropp - Page 7

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          Duberstein, 363 U.S. 278, 285 (1960), the Supreme Court stated                
          that a gift arises out of a transfer resulting from a “‘detached              
          and disinterested generosity,’ * * * ‘out of affection, respect,              
          admiration, charity or like impulses.’” (Citations omitted.)  We              
          perform a factual analysis in determining whether a transfer is               
          to be considered a gift, looking primarily at the intent of the               
          transferor.  See id.                                                          
               Petitioners contend that the $81,000 withdrawn from the                  
          joint account constituted a nontaxable gift.  Respondent contends             
          that the $81,000 constituted compensation for services rendered               
          by Paul to Doris Kropp.                                                       
               Doris Kropp did not testify at trial.  In support of their               
          argument, Paul and Lorna testified that during 1994, Paul did not             
          render any services to Doris Kropp.  Respondent presented two                 
          witnesses, Mr. Shea and Mrs. Harte, in support of his position.               
               Although it is without question that Paul performed services             
          for his father and his father’s estate from 1981 to 1984 and that             
          he continued to perform some minor services for Doris Kropp in                
          the years immediately following her husband’s death, the record               
          does not support respondent’s contention that Paul continued to               
          perform services for Doris Kropp as late as 1994, the taxable                 
          year at issue.                                                                
               Mr. Shea did not have any personal knowledge of the services             
          Paul may have performed for Doris Kropp in 1994.  Mr. Shea                    

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