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in question, the Commissioner determined that the purpose of the
transfer was to avoid tax, and thus the taxpayer did not meet the
sixth threshold condition of Rev. Proc. 2000-15, sec. 4.01. In
particular, the Commissioner concluded that the taxpayer received
a transfer of disqualified assets. This Court upheld the
Commissioner’s determination.
Davis Etkin added Lois Etkin’s name to the deed of their
marital residence within 2 years preceding March 28, 2001, and
transferred their jointly owned car and boat between March 2001
and January 2003. These transfers took place shortly after their
tax liabilities arose, and the transfer of the car and the boat
took place after petitioners received the notice of intent to levy
on their property. Further, Davis Etkin claimed that the
transfers were made because of his marriage to Lois Etkin;
however, the record shows that Lois and Davis Etkin have been
married since 1990 and that Davis Etkin owned the house before he
married Lois Etkin. In addition, Davis Etkin did not convert
ownership of the car or boat to joint ownership; rather, he
transferred the assets solely to Lois Etkin. Petitioners have not
produced any evidence that the principal purpose of the transfer
was not to avoid the payment of tax. Further, petitioners have
not provided any other logical or substantial reason for the
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