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parties must compute the deficiency on the basis of the matters
decided by the Court. See id. Petitioner cannot reasonably
contend that the validity of the alleged transfer giving rise to
the gift tax deduction was not at issue. At trial, petitioner
asserted various arguments relating to the transfer of assets to
GFLP, but we ultimately held that decedent did not complete the
transfer as claimed. Because the attempted transfer of the
Marital Fund assets to GFLP was not completed and did not
constitute a gift, a gift tax liability attributable to the
transfer of Marital Fund assets did not arise, and no gift tax
deduction is warranted. In the gift tax case, petitioner
acknowledged this result by entering into an agreement
recognizing that petitioner was not liable for any gift tax
deficiency and crediting all gift taxes paid against petitioner’s
estate tax deficiency. The allowance of a gift tax deduction for
$1,183,029 would not reflect the findings of the Court in this
estate tax case or result in a correct computation of
petitioner’s estate tax deficiency.
Respondent’s computation incorporates the parties’
stipulations and the findings of the Court and accounts for the
appropriate credits and deductions claimed and substantiated by
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