Estate of Austin Korby - Page 12

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          KPLP interests.4  The deficiency in estate tax totaled                      
               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                   

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