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remaining for decision is the valuation of decedent's qualified
and elected real property under section 2032A. There are two
questions for determination:
(1) Whether petitioner can value the real property under
the provisions of section 2032A(e)(7) or must value the property
under section 2032A(e)(8), which requires a determination of
whether the leases submitted by petitioner, entered into in 1968
and 1969, are leases of comparable land for the 5 most recent
calendar years ending before the date of decedent's death.
1(...continued)
not elect special use valuation for the Morgan tract. The fair
market value of the Morgan tract on decedent’s date of death was
$148,000.
In 1990, decedent's son made distributions totaling $50,000
of decedent's funds to her grandchildren. Of the amount
distributed, $25,000 constituted gifts by decedent to three
grandchildren of less than $10,000 to each grandchild. These
gifts qualify for the annual gift tax exclusion and are not
includable in decedent's gross estate. The remaining $25,000
distribution was not an effective gift, and the amount is
includable in decedent's gross estate.
In 1991, decedent's son made distributions totaling $27,000
of decedent's funds to her grandchildren. Of the amount
distributed, $13,500 constituted gifts by the decedent to three
grandchildren in an amount of less than $10,000 to each
grandchild. These gifts qualify for the annual gift tax
exclusion and are not includable in decedent's gross estate. The
remaining $13,500 distribution was not an effective gift, and the
amount is includable in decedent's gross estate.
Petitioner reserves the right to deduct additional eligible
administrative expenses on the estate tax return for Federal
estate tax purposes.
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