Damner v. Commissioner
United States Tax Court
1. The net worth of a business allocated between separate property of the petitioner and community property for the purpose of fixing the value of a gift to his wife by an agreement transmuting his separate property into community property. 2. A presumption of California law favoring community property does not relieve the taxpayer of the burden of overcoming the presumption of correctness of the Commissioner's determination. 3. A donor, who, under a mistaken conception of…
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1. The net worth of a business allocated between separate property of the petitioner and community property for the purpose of fixing the value of a gift to his wife by an agreement transmuting his separate property into community property. 2. A presumption of California law favoring community property does not relieve the taxpayer of the burden of overcoming the presumption of correctness of the Commissioner's determination. 3. A donor, who, under a mistaken conception of law, takes no part of the specific exemption in the gift tax return, is entitled to claim the exemption in a proceeding…
1Opinion of the Court
OPINION.
Aetjndeix, Judge:
The basic question is the value of the petitioner’s separate property, if any, on the date of the so-called transmutation agreement. If the petitioner was possessed of any separate property on that date, it is unquestioned that a gift of one-half of the value of that separate property was made, since the wife, by virtue of section 161 (a) of the California Civil Code, takes a “present, existing, and equal” interest in property coming into the community estate after the effective date of that statute, July 29,1927.
The question is purely factual. The Commissioner has…
2Cases cited1 opinion
- Estate of SillCalifornia Court of Appeal · 1932
3Cited by23 opinions
- CTUW Hollingsworth v. CommissionerUnited States Tax Court · 1986
- Lord v. CommissionerUnited States Tax Court · 1973
- Dougherty v. CommissionerUnited States Tax Court · 1974
- Oliver v. CommissionerUnited States Tax Court · 1945
- Van Vorst v. CommissionerUnited States Tax Court · 1946
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