- 41 -
through 1994. She transferred that legal title to Eddy Ben
Cordes in 1994, but at no time did she transfer a beneficial
interest in CFC. The transfer, therefore, is not subject to the
gift tax.
We conclude that because Mr. Cordes owned all beneficial
interest in CFC during the years at issue, the transfers of CFC
stock by and between Eddy Ben Cordes and Mrs. Cordes were merely
of legal title and, as a result, were not subject to the gift
tax.
B. Transfers of Stock in the Cordes Family Dealerships
The other disputed transfers were of shares of stock in the
Cordes family dealerships by and between members of the Cordes
family. Respondent determined the transfers were completed gifts
subject to the gift tax. Petitioners argued that Mr. Cordes
retained a power to revoke those transfers, thereby rendering the
gifts incomplete and not subject to the gift tax.
Petitioners do not expressly argue that Mr. Cordes was the
beneficial owner of all the stock in the Cordes family
dealerships. However, their argument that Mr. Cordes exercised
complete and unencumbered control over the Cordes corporations
and retained the power to revoke all stock transfers implicitly
recognizes that Mr. Cordes was the beneficial owner of the Cordes
Page: Previous 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 NextLast modified: May 25, 2011