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applied to the net asset value of the partnership assets, the
following discounts should apply:
Date of Minority Marketability Combined
Partnership Transfer Discount Discount Discount
SFLP I 12/28/98 5.88% 35% 38.82%
SFLP II 12/20/99 15.44 35 45.0
SFLP II 1/31/00 17.12 35 46.13
There is no dispute as to the value of the stock without any
discount.
OPINION
Section 2501 imposes a tax on the transfer of property by
gift during the taxable year. This tax is imposed whether the
transfer is in trust or otherwise and whether the gift is direct
or indirect. See sec. 2511. A gift of property is valued as of
the date of the transfer. See sec. 2512(a). The gift is
measured by the value of the property passing from the donor,
rather than by the value of the property received by the donee or
upon measure of enrichment to the donee. See sec. 25.2511-2(a),
Gift Tax Regs.
The fair market value of the transferred property is the
“price at which property would change hands between a willing
buyer and a willing seller, neither being under any compulsion to
buy or to sell, and both having reasonable knowledge of relevant
facts.” Sec. 25.2512-1, Gift Tax Regs. Where property is
transferred for less than adequate and full consideration in
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Last modified: May 25, 2011