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majority assert a line of analysis that is contrary to both the
established facts and respondent’s litigating position. Pursuant
to the assignment agreement, the gift closed, and beneficial and
legal title to the assigned interest was transferred to CFT on
January 12, 1996. Respondent contends that, irrespective of when
the gift closed, the Court must ignore all intermediate steps and
focus on the end result (i.e., the cash received in redemption).
The majority sidestep the assignment agreement and redemption,
and focus on the allocation in the confirmation agreement.
Second, the majority cite regulations that are inapplicable
to petitioners’ transfer. See sec. 1.664-2(a)(1)(iii), Income
Tax Regs. (relating to charitable remainder annuity trusts); sec.
20.2055-2(e)(2)(v) and (vi)(a), Estate Tax Regs. (relating to
guaranteed annuity interests), and 25.2702-3(b)(1)(ii)(B) and
(b)(2), Gift Tax Regs. (relating to qualified annuity interests).
Majority op. pp. 63-64 note 46. The deductibility of all
transfers to charities is not governed by these requirements.
Third, as the majority acknowledge, petitioners transferred
to the donees “a fraction of the gifted interest based on the
value of that interest as determined under Federal gift tax
valuation principles.” Majority op. p. 62. There is no material
difference between fair market value “as determined under Federal
gift tax valuation principles” and fair market value “as finally
determined for Federal gift tax purposes”. Once this Court’s
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