Estate of Rebecca A. Wineman - Page 1

                                 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.                  

Page:   1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011