- 10 -
OPINION
Respondent determined that decedent's transfers of Sigco and
Minn-Kota stock during 1994 and 1995 to his brother's family were
reciprocated or "crossed" and, in substance, gifts to decedent's
own children and their families. Accordingly, respondent
disallowed the annual exclusions for gifts of a present interest
for decedent's transfers of stock to his brother's family and
increased the amount of taxable gifts reported on decedent's
estate tax return.
The estate contends that respondent's determination is
erroneous because the transfers at issue were made for a business
purpose, and decedent's intent in making the transfers was
donative.
Section 2001(a) provides that a tax is imposed on the
transfer of the taxable estate of every decedent who is a citizen
or resident of the United States. The tax imposed is equal to
the excess of a tentative tax computed on the sum of the taxable
estate and the adjusted taxable gifts over the aggregate amount
of tax that would have been payable with respect to gifts made by
the decedent after December 31, 1976, using the unified rate
schedule in effect at the date of death. See sec. 2001(b). The
term "adjusted taxable gifts" means the total amount of the
taxable gifts (within the meaning of section 2503) made by the
decedent after December 31, 1976, other than gifts which are
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011