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subtracting from the gross value so arrived at the value, at the
end of the figurative day, of the partnership interest that
petitioner received back and retained, sec. 2512(b),6 not 50
percent of the value of the leased land that he transferred to
the partnership.
5(...continued)
see, e.g., Rushton v. Commissioner, 498 F.2d 88 (5th Cir. 1974),
affg. 60 T.C. 272 (1973); Calder v. Commissioner, 85 T.C. 713
(1985), which may be attributed to the presence of a specifically
targeted regulation. In any event, my sense of what the estate
depletion theory implies for gift tax purposes is consistent with
and supported by the rule that unitizes a block of shares held at
death to determine the value at which they are included in the
gross estate, notwithstanding that they may be bequeathed to more
than one beneficiary. See, e.g., Ahmanson Found. v. United
States, 674 F.2d 761, 768 (9th Cir. 1981); Estate of Chenoweth v.
Commissioner, 88 T.C. 1577, 1582 (1987).
6 I see no problem in harmonizing the above-suggested
approach with the considerations that apply in determining
whether a gift qualifies as a present interest rather than future
interest for the purpose of the annual exclusion under sec.
2503(b). The annual exclusion inquiry necessarily focuses on the
quality and quantity of the donee’s interest. See Stinson Estate
v. United States, 214 F.3d 846 (7th Cir. 2000); sec. 25.2503-3,
Gift Tax Regs.; see also Helvering v. Hutchings, 312 U.S. 393
(1941); Estate of Cristofani v. Commissioner, 97 T.C. 74 (1991).
Analogous considerations apply in computing the value of bequests
entitled to the estate tax charitable or marital deduction. See,
e.g., Ahmanson Found. v. United States, supra; Estate of
Chenoweth v. Commissioner, supra.
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