-44-
raised in the statutory notice of deficiency and are therefore
new matters within the meaning of Rule 142(a). Thus, as
respondent has conceded, the burden of proof is on respondent.
C. The Parenthetical Exception
Sections 2036 and 2038 each contain an identical
parenthetical exception for “a bona fide sale for an adequate and
full consideration in money or money’s worth”. Regulations
promulgated under both sections reference the definition for this
phrase contained in section 20.2043-1, Estate Tax Regs. Secs.
20.2036-1(a), 20.2038-1(a)(1), Estate Tax Regs. Section 20.2043-
1(a), Estate Tax Regs., provides: “To constitute a bona fide
sale for an adequate and full consideration in money or money’s
worth, the transfer must have been made in good faith, and the
price must have been an adequate and full equivalent reducible to
a money value.”
Availability of the exception thus rests on two
requirements: (1) A bona fide sale and (2) adequate and full
consideration. This Court has recently summarized when these
requirements will be satisfied, as follows:
In the context of family limited partnerships, the
bona fide sale for adequate and full consideration
exception is met where the record establishes the
existence of a legitimate and significant nontax reason
for creating the family limited partnership, and the
transferors received partnership interests
proportionate to the value of the property transferred.
* * * The objective evidence must indicate that the
nontax reason was a significant factor that motivated
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