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tax computed ($187,966) being more than offset by his claimed
maximum unified credit ($192,800).
In the notice of deficiency, respondent determined that the
fair market value of the 50-percent interest in the leased land
that petitioner gifted to his sons was $639,300 (implying a value
of $1,278,600 for petitioner’s entire interest in the leased
land). Respondent made no adjustment to the gift value of the
bank stock reported on the return. Respondent determined that
petitioner had a gift tax deficiency of $168,577.
OPINION
A. General Legal Principles
Section 2501 generally imposes an excise tax on the transfer
of property by gift during the taxable year. The gift tax is
imposed only upon a completed and irrevocable gift. See Burnet
v. Guggenheim, 288 U.S. 280 (1933). A gift is complete as to any
property when “the donor has so parted with dominion and control
as to leave in him no power to change its disposition, whether
for his own benefit or for the benefit of another”. Sec.
25.2511-2(b), Gift Tax Regs.
A gift of property is valued as of the date of the transfer.
See sec. 2512(a). If property is transferred for less than
adequate and full consideration, then the excess of the value of
the property transferred over the consideration received is
generally deemed a gift. See sec. 2512(b). The gift is measured
by the value of the property passing from the donor, rather than
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