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transfers did not occur for Federal gift tax purposes. We have
considered Eddy Ben Cordes’s and Mrs. Cordes’s levels of
involvement in these and other corporate activities, and we agree
that these transfers are not subject to the gift tax, not because
the transfers of legal title to the stock did not occur on the
books of the corporation, but because the transfers were not of a
beneficial interest.
In Cordes v. Commissioner, T.C. Memo. 1994-377, we found Mr.
Cordes to be the beneficial owner of CFC in 1988. We concluded
earlier in this opinion that Mr. Cordes was the beneficial owner
of CFC in 1989 through 1993. The facts before us indicate that
Mr. Cordes’s control has existed unimpaired from CFC’s
incorporation in 1964 through the date of the trial. On all of
the intervening dates, Mr. Cordes was the beneficial owner of all
of CFC’s stock.
Eddy Ben Cordes did not have any beneficial interest in CFC
in 1983 when he transferred mere legal title to Mrs. Cordes, nor
did he later obtain a beneficial interest in CFC and transfer
that to Mrs. Cordes. Because Eddy Ben Cordes never transferred a
beneficial interest in CFC to Mrs. Cordes, the transfer is not
subject to the gift tax.
Likewise, Mrs. Cordes never acquired a beneficial interest
in CFC and therefore never transferred such an interest. Mrs.
Cordes held only legal title to some of CFC’s stock from 1983
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