Estate of Duilio Costanza - Page 8

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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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