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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
inheritance.
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