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they were transferred, instead of including previously
transferred property in the transferor’s gross estate.” Treating
the partnership assets, rather than decedent’s interest in the
partnership, as the “property” to which section 2703(a) applies
in this case would raise anew the difficulties that Congress
sought to avoid by repealing section 2036(c) and replacing it
with chapter 14. We conclude that Congress did not intend, by
the enactment of section 2703, to treat partnership assets as if
they were assets of the estate where the legal interest owned by
the decedent at the time of death was a limited partnership or
corporate interest. See also Estate of Church v. United States,
85 AFTR 2d 2000-804, 2000-1 USTC par. 60,369 (W.D. Tex. 2000).
Thus, we need not address whether the partnership agreement
satisfies the safe harbor provisions of section 2703(b).
Respondent did not argue separately that the Stranco
shareholders’ agreement should be disregarded for lack of
economic substance or under section 2703(a).
Gift at the Inception of SFLP
Respondent determined in the statutory notice and argues in
the alternative that, if the partnership is recognized for estate
tax purposes, decedent made a gift when he transferred property
to the partnership and received in return a limited partnership
interest of lesser value. Using the value reported by petitioner
on the estate tax return, if decedent gave up property worth in
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