- 2 -
Held: The fair market value at D’s date of death
of assets D transferred to the partnership is included
in D’s gross estate. See sec. 2036(a), I.R.C.
Rex B. Cruse, Jr., and S. Jeffrey Gately, for petitioner.
Deborah H. Delgado, T. Richard Sealy III, and James G.
MacDonald, for respondent.
COLVIN, Judge: Respondent determined that petitioner is
liable for a deficiency in gift tax of $161,494 for gifts made by
decedent in 1993 and a deficiency in estate tax of $358,771.
After concessions,1 the issue for decision is whether assets that
decedent transferred to the partnership are included in his
gross estate under section 2036(a). We hold that they are, and
that the fair market value of those assets was $1,634,654 when
decedent died.2
1 Respondent no longer contends that (1) the partnership is
a sham or that (2) the duty of consistency or sec. 2703(a)(2)
applies here. Petitioner's motion to shift the burden of proof
regarding those theories is moot.
2 In light of this holding, we need not decide whether, as
respondent contends, (1) the assets transferred to the
partnership are included in decedent's gross estate under sec.
2038, (2) any “applicable restriction” in the partnership
agreement is disregarded under sec. 2704(b), (3) lapsed
liquidation rights are included in decedent’s gross estate under
sec. 2704(a), or (4) decedent did not make another gift to his
children in 1994.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011