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a. Respondent determined petitioner made a
taxable gift of $125,000 to John Cordes in
1991. Petitioner, in his petition, alleged
that the transfer of $125,000 was a loan,
rather than a taxable gift. Petitioner
introduced no evidence of a loan and did
not present any argument regarding this
adjustment in his posttrial briefs. We
deem petitioner to have conceded the
transfer of $125,000 to John Cordes was a
taxable gift.
b. Respondent determined petitioner made
taxable gifts of $100,000 and $84,000 to
John Cordes, and forgave portions of the
Richard Note and the Bower Note in the
amounts of $300,000 and $77,900,
respectively, such forgiveness constituting
taxable gifts.
(1) Petitioner conceded in his reply
brief that he made gifts, with
respect to the Richard Note and the
Bower Note, in amounts equal to
$300,000 and $77,900, respectively.
However, respondent concedes that
the correct amounts of the gifts
are $214,941 and $77,550,
respectively. In light of
respondent’s concession, we shall
treat petitioner’s concession as
effective to the extent of $214,941
and $77,550, respectively.
(2) Petitioner, in his petition,
alleged that the gifts are not
taxable only because the
applications of the unified credit
and annual exclusions, see sec.
2503, reduce his tax liability.
Petitioner has not presented any
argument regarding these
adjustments in his posttrial
briefs. We deem petitioner to have
conceded that the gifts are taxable
gifts, as defined in sec. 2503(a),
subject to the annual exclusion in
sec. 2503(b). We leave for the
Rule 155 computation whether and to
what extent the unified credit and
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