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contends that section 2043(a) requires such “consideration” to be
netted from the gift taxes includable in decedent’s gross estate
under section 2035(c).
We disagree for several reasons.
First, the plain language of section 2035(c) requires the
gross estate to be increased by gift taxes “paid * * * by the
decedent or his estate on any gift made by the decedent or his
spouse * * * during the 3-year period ending on the date of the
decedent’s death.” Section 2035(c) does not provide for the
netting of “consideration” received for the payment of gift
taxes.
Second, section 2043(a), by its terms, applies to “transfers
* * * described in sections 2035 to 2038, inclusive, and section
5(...continued)
States, 277 F.3d at 497. The Court of Appeals noted that “the
donee children have paid no gift taxes.” Id. at 496. The estate
contends that in reaching these conclusions, the Court of Appeals
did not thereby actually decide that there was no consideration
for decedent’s 1991 and 1992 gifts; rather, the estate asserts,
the Court of Appeals held only that the so-called net gift
doctrine did not apply to reduce the amount of decedent’s
donative transfers. The distinction that the estate seeks to
draw appears based more in semantics than substance. Even if we
were to accept the distinction the estate seeks to draw, however,
the fact would remain, as the estate concedes, that $4,680,284 is
the amount of gift taxes paid by or on behalf of decedent for
gifts that decedent made in 1991 and 1992. As discussed in more
detail in the text above, that concession suffices for purposes
of disposing of respondent’s motion for summary judgment with
respect to the application of sec. 2035(c).
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