In the Matter of John McCandish King, Debtor-Appellee-Cross-Appellant v. United States of America, Appellant-Cross-Appellee

WILLIAM E. DOYLE,

Circuit Judge (dissenting).

I respectfully dissent from the decision of the majority of the court that the transaction in question was a sale and not a gift subject to gift tax. The several differences follow.

I

I disagree with the majority’s ruling that intent of Mr. King governed the entire transaction and was a factual matter which had the effect of rendering the finding unimpeachable.

The source of my disagreement on this ground is that intent of the donor is not the determining factor in deciding whether it is a gift or sale. Treas.Reg. Section 25.2511-1(g)(1) (26 C.F.R.)…