State Department of Revenue v. Crews

INGRAM, Judge.

The State Department of Revenue (Revenue Department) appeals from an order by the trial court construing § 40-18-6(a)(2) in favor of Mr. and Mrs. Crews (taxpayers). The trial court found as a matter of law that pre-March 15, 1985,' donees of gift property shall receive a stepped-up basis in that property equal to its fair market value at the time of the completed gift. The dispositive issue on appeal is whether'the “substance over form” doctrine or the “imputed income” rule invalidates this construction.

In the early 1980’s, Mr. Crews leased a piece of property to Capitol Motor…