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partnership
where the record establishes the existence of a legiti-
mate and significant nontax reason for creating the
family limited partnership, and the transferors re-
ceived partnership interests proportionate to the value
of the property transferred. See, e.g., Estate of
Stone v. Commissioner, * * * [T.C. Memo. 2003-309].
The objective evidence must indicate that the nontax
reason was a significant factor that motivated the
partnership’s creation. A significant purpose must be
an actual motivation, not a theoretical justification.
[Certain citations omitted.]
Estate of Bongard v. Commissioner, 124 T.C. 95, 118 (2005).
It is the position of decedent’s estate that Ms. Mirowski’s
transfers to MFV were bona fide sales for adequate and full
consideration in money or money’s worth under section 2036(a).
In support of that position, decedent’s estate contends that Ms.
Mirowski had legitimate and substantial nontax purposes for
forming, and transferring assets to, MFV, that Ms. Mirowski
received an interest in MFV proportionate to the value of the
assets that she transferred to it, that Ms. Mirowski’s capital
account was properly credited with those assets, and that, in the
event of a liquidation and dissolution of MFV, Ms. Mirowski had
the right to a distribution of property from MFV in accordance
with her capital account.
Respondent counters that the exception under section 2036(a)
for a bona fide sale for an adequate and full consideration in
money or money’s worth does not apply to Ms. Mirowski’s transfers
to MFV. In support of that position, respondent contends that
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Last modified: March 27, 2008