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Stone and Ms. Stone to each of the Five Partnerships were bona
fide sales for adequate and full consideration in money or
money’s worth under section 2036(a). Consequently, we need not
and shall not address the third factual issue presented under
section 2036(a)(1).
Ultimate Holdings
Based upon our examination of the entire record before us,
we hold that none of the assets owned by any of the Five Partner-
ships (1) on the date of Mr. Stone’s death is includible under
section 2036(a)(1) in his gross estate and (2) on the date of Ms.
Stone’s death is includible under section 2036(a)(1) in her gross
estate.
Section 2044
Respondent argues that, because section 2036(a)(1) requires
the inclusion in Mr. Stone’s gross estate of 69.973 percent of
the assets of ES3LP on the date of his death, section 2044 re-
quires the inclusion in Ms. Stone’s gross estate of 69.973 per-
cent of the assets of ES3LP on the date of her death.78 We have
rejected respondent’s position that section 2036(a)(1) requires
the inclusion in Mr. Stone’s gross estate of 69.973 percent of
78Respondent did not raise sec. 2044 in the notice issued to
Ms. Stone’s estate or in the answer. We conclude that respon-
dent’s reliance on sec. 2044 raises a new issue that respondent
advances for the first time on brief. However, the estates do
not object to, and we find no prejudice to the estates as a
result of, respondent’s raising that issue for the first time on
brief.
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