Richard R. Hamlett - Page 17

                                       - 17 -                                         
               Section 102(a)8 provides that gifts are excluded from gross            
          income.  The Supreme Court defined “gift” as a transfer of                  
          property that proceeds from a “‘detached and disinterested                  
          generosity,’” “‘out of affection, respect, admiration, charity or           
          like impulses.’”  Commissioner v. Duberstein, 363 U.S. 278, 285             
          (1960)(quoting Commissioner v. LoBue, 351 U.S. 243, 246 (1956);             
          Robertson v. United States, 343 U.S. 711, 714 (1952)).  The                 
          transferor’s intent in making the transfer is the most critical             
          consideration in determining whether the property transferred was           
          a gift.  Id.                                                                
               Applying those considerations to the instant case, it is               
          clear that the $100,000 that Parker transferred to petitioner was           
          not a gift.  While we do not have direct evidence of Parker’s               
          intent, we note that when she transferred the $100,000 to                   
          petitioner, she received all petitioner’s stock in the                      
          Corporations in return.  Thus, the $100,000 transfer to                     
          petitioner was not motivated by a detached and disinterested                
          generosity.  Moreover, petitioner memorialized his obligation to            
          repay Parker the $100,000 after the bankruptcy court voided ab              
          initio the transfer of the stock.                                           

               8  SEC. 102.  GIFTS AND INHERITANCES.                                  
                    (a) General Rule.–-Gross income does not include the              
               value of property acquired by gift, bequest, devise, or                

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  Next

Last modified: May 25, 2011