Estate of Albert Strangi - Page 20

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          excess of $10 million and received back a limited partnership               
          interest worth approximately $6.5 million, he appears to have               
          made a gift equal to the loss in value.  (Petitioner now claims a           
          greater discount, as discussed below.)  In analogous                        
          circumstances involving a transfer to a corporation, the Court of           
          Appeals in Kincaid v. United States, 682 F.2d 1220 (5th Cir.                
          1982), held that there was a taxable gift and awarded summary               
          judgment to the Government.  The Court of Appeals rejected the              
          discounts claimed by the taxpayer, stating that no business                 
          person “would have entered into this transaction, * * * [thus]              
          the ‘moving impulse for the * * * transaction was a desire to               
          pass the family fortune on to others’”.  Id. at 1225 (quoting               
          Robinette v. Helvering, 318 U.S. 184, 187-188 (1943)).  The Court           
          of Appeals in Kincaid concluded that, while there may have been             
          business reasons for the taxpayer to transfer land to a family              
          corporation in exchange for stock, “there was no business                   
          purpose, only a donative one, for Mrs. Kincaid to accept less               
          value in return than she gave up.”  Id. at 1226.                            
               In this case, the estate claims that the assets were                   
          transferred to SFLP for the business purposes discussed above.              
          Following the formation of SFLP, decedent owned a 99-percent                
          limited partnership interest in SFLP and 47 percent of the                  
          corporate general partner, Stranco.  Even assuming arguendo that            
          decedent’s asserted business purposes were real, we do not                  

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