- 3 - her petition was filed with this Court. At the outset, we note that the record in this case leaves much to be desired. Nevertheless, we have carefully reviewed the evidence and done our best to make an appropriate disposition of the case. A. Petitioner’s Practice of Deducting Gifts to Family Members On her income tax returns for 1988 through 1995, petitioner deducted gifts that she made to various individuals, most if not all of whom were family members. These deductions served to reduce petitioner’s taxable income and generate tax refunds for those years. Petitioner admits that her practice of deducting gifts to family members on her income tax returns was contrary to law. See sec. 170(c). Petitioner professes that she was motivated to do so by the desire to reduce the estate tax upon her death, see sec. 2001(a), and through a misunderstanding of the $10,000 annual exclusion for gift tax purposes, see sec. 2503(b).4 Petitioner reckons that her practice of deducting gifts to family members on her income tax returns generated erroneous income tax refunds for 1988 through 1992 in the following amounts: 4 For gift tax purposes, sec. 2503(b) allows a donor to exclude from taxable gifts the first $10,000 of gifts of present interests made to each donee during the taxable year.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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