T.C. Memo. 2000-193
UNITED STATES TAX COURT
ESTATE OF REBECCA A. WINEMAN, DECEASED,
ELEANOR TRUOCCHIO AND DEAN WINEMAN,
CO-EXECUTORS, Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 27339-96. Filed June 28, 2000.
1. Decedent (D) gave an aggregate 24-percent
interest in her homestead property to her children. In
the years following the transfer, she continued to
reside on the property. R determined that the 24-
percent interest is includable in D’s gross estate
pursuant to sec. 2036, I.R.C. Held: D’s continued use
of the homestead property as her residence following
the transfer of minority interests in the property to
her children was not a retained life estate in the
property interests conveyed to her children.
Consequently, the value of the minority interests is
not includable in her estate under sec. 2036, I.R.C.
2. D rented her interests in certain real estate
to Coastal Ranches, a corporation owned by her
children, at a below-market rent. R determined that
the annual difference between fair market rent and
actual rent constituted taxable gifts. Held: R’s
computation of the amount of taxable gifts sustained.
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