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expiration of the installment term the remaining value of the
installments are not included in the seller’s estate.1
Intrafamily transactions are subject to rigid scrutiny, and
transfers between family members are presumed to be gifts. A
sale of property from a parent to a child in exchange for an
installment obligation will not be "bona fide" absent an
affirmative showing that there existed at the time of the
transaction a "real expectation of repayment and intent to
enforce the collection of the indebtedness." Estate of Van Anda
v. Commissioner, 12 T.C. 1158, 1162 (1949), affd. 192 F.2d 391
(2d Cir. 1951). There we explained that "the giving of a note or
other evidence of indebtedness which may be legally enforceable
is not in itself conclusive of the existence of a bona fide debt.
* * * It must be clearly shown that it was the intention of the
parties to create a debtor-creditor status." Id.
Here, the documents giving effect to the transfer were all
executed after December 15, 1992, but were backdated to suggest
that they had been signed on that date. Although the SCIN, dated
December 15, 1992, required the initial payment to be made on
January 1, 1993, there is no evidence that the SCIN had even been
1 See Estate of Moss v. Commissioner, 74 T.C. 1239 (1980);
Banoff & Hartz, "New Tax Court Case Expands Opportunities for
Self-Canceling Installment Notes", 76 J. Taxn. 332 (1992); cf.
Estate of Frane v. Commissioner, 98 T.C. 341 (1992), affd. in
part and revd. in part 998 F.2d 567 (8th Cir. 1993); Estate of
Musgrove v. United States, 33 Fed. Cl. 657 (1995).
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