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redemption, the majority seek to restrict petitioners’ charitable
deduction to the $435,019 interest (i.e., 3.62376573 percent) CFT
retained pursuant to the confirmation agreement. In essence, the
reasoning set forth by the majority borrows from both the
integrated transaction and violation of public policy doctrines.
The majority’s disregard of the transfer of property interests
pursuant to the assignment agreement, and focus on the allocation
of interests pursuant to the confirmation agreement, implicates
the integrated transaction doctrine. Similarly, the majority’s
refusal to adhere to the explicit terms of the assignment
agreement implicates the violation of public policy doctrine.
II. Respondent Did Not Establish Applicability of the Substance
Over Form Doctrine
Respondent contended that formation of the limited
partnership, assignment of partnership interests, confirmation of
the assignment, and redemption of the charities’ partnership
interests were all part of an integrated transaction where
petitioners intended to transfer all of their assets to their
sons and the trusts. Respondent simply failed to meet his
burden.
Courts have employed the substance over form doctrine where
a taxpayer, intending to avoid the gift tax, transfers property
to an intermediary who then transfers such property to the
intended beneficiary.7 In some instances the intermediary was
7 The Court of Appeals for the Fifth Circuit and other
(continued...)
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