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KPLP interests.4 The deficiency in estate tax totaled
$1,070,482.
OPINION
Respondent argues that the value of the property transferred
by Austin and Edna to KPLP is includable in Austin’s and Edna’s
gross estates under sections 2036(a)(1) and (2) and/or
2038(a)(1). The estate argues that sections 2036 and 2038 do not
apply to the assets the Korbys transferred to KPLP because Austin
and Edna retained no right to income from, the corpus of, or
power of appointment over them, KPLP received the assets in a
bona fide sale for adequate and full consideration in money or
money’s worth, and Austin and Edna did not retain ownership or
control over the assets alone or in conjunction with anyone else
or the power alone or in conjunction with anyone else to alter,
amend, revoke, or terminate the enjoyment by any person of the
assets. See secs. 2036(a)(1) and (2), 2038(a).
Respondent’s determination in the notice of deficiency is
entitled to a presumption of correctness. See Rule 142(a). The
parties do not address section 7491(a). The estate does not
argue that the burden of proof has shifted to respondent under
section 7491(a), and it has failed to establish that it has
4The estate does not challenge respondent’s inclusion of the
living trust property under secs. 2036 and 2038 or his adjustment
to the adjusted taxable gifts. We therefore accept these
adjustments.
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