Steinberg v. Commissioner
United States Tax Court
P entered into a binding gift agreement with her daughters under which P gave her daughters cash and securities and in exchange the daughters agreed to assume and to pay, among other things, any estate tax liability imposed under I.R.C. sec. 2035(b) as a result of the gifts in the event that P passed away within three years of the gifts.
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P entered into a binding gift agreement with her daughters under which P gave her daughters cash and securities and in exchange the daughters agreed to assume and to pay, among other things, any estate tax liability imposed under I.R.C. sec. 2035(b) as a result of the gifts in the event that P passed away within three years of the gifts. In calculating for gift tax purposes the gross fair market value of the property transferred to the daughters, P reduced the fair market value of the cash and securities by an amount representing the value of the daughters' assumption of the potential I.R.C.…
1Opinion of the Court
OPINION
Kerrigan, Judge:
This gift tax case is before the Court on respondent’s motion for summary judgment filed under Rule 121. Petitioner objects to the motion.
Respondent issued petitioner a notice of deficiency, increasing petitioner’s gift tax liability by $1,804,908 for tax year 2007. Regarding the motion for summary judgment, respondent disputes only one issue: whether a donee’s promise to pay any Federal or State estate tax liability that may arise under section 2035(b) if the donor dies within three years of the gift may constitute consideration in money or money’s worth within the…
2Cases cited33 opinions
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Bull v. United StatesSupreme Court of the United States · 1935
- Sundstrand Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1994
- Sundstrand Corp. v. CommissionerUnited States Tax Court · 1992
- Ithaca Trust Co. v. United StatesSupreme Court of the United States · 1929
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3Cited by2 opinions
- Steinberg v. Comm'rUnited States Tax Court · 2015
- Steinberg v. CommissionerUnited States Tax Court · 2013