J.C. Shepherd - Page 16




                                       - 16 -                                         
          business for profit.”  Ala. Code sec. 10-8-2 (1994); see LeFrak             
          v. Commissioner, supra.                                                     
               Nor do we agree with petitioner’s contention that his                  
          transfers should be characterized as enhancements of his sons’              
          existent partnership interests.  The gift tax is imposed on the             
          transfer of property.  See sec. 2501.  Here the property that               
          petitioner possessed and transferred was his interests in the               
          leased land and bank stock.  How petitioner’s transfers of the              
          leased land and bank stock may have enhanced the sons’                      
          partnership interests is immaterial, for the gift tax is imposed            
          on the value of what the donor transfers, not what the donee                
          receives.  See Robinette v. Helvering, 318 U.S. 184, 186 (1943)             
          (the gift tax is “measured by the value of the property passing             
          from the donor”); Stinson Estate v. United States, 214 F.3d 846,            
          849 (7th Cir. 2000); Citizens Bank & Trust Co. v. Commissioner,             
          839 F.2d 1249 (7th Cir. 1988) (for gift and estate tax purposes,            
          value of stock transferred to trusts was determined without                 
          regard to terms or existence of trust); Goodman v. Commissioner,            
          156 F.2d 218, 219 (2d Cir. 1946), affg. 4 T.C. 191 (1944); Ward             
          v. Commissioner, 87 T.C. 78, 100-101 (1986); LeFrak v.                      
          Commissioner, supra; sec. 25.2511-2(a), Gift Tax Regs.; cf.                 
          Estate of Bright v. United States, 658 F.2d 999, 1001 (5th Cir.             
          1981) (for estate tax purposes, “the property to be valued is the           
          property which is actually transferred, as contrasted with the              






Page:  Previous  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  Next

Last modified: May 25, 2011