Estate of Sachs v. Commissioner
United States Tax Court
Decedent made substantial net gifts in 1978. Pursuant to Diedrich v. Commissioner, 457 U.S. 191 (1982), petitioners agreed to recognize additional 1978 income attributable to the net gifts. Respondent determined that gift tax paid by decedent's donees is includable in decedent's estate under sec. 2035(c), I.R.C. 1954. Respondent also determined that certain Treasury bonds must be included in the estate at par value to the extent that they are available to pay the deficiency.
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Decedent made substantial net gifts in 1978. Pursuant to Diedrich v. Commissioner, 457 U.S. 191 (1982), petitioners agreed to recognize additional 1978 income attributable to the net gifts. Respondent determined that gift tax paid by decedent's donees is includable in decedent's estate under sec. 2035(c), I.R.C. 1954. Respondent also determined that certain Treasury bonds must be included in the estate at par value to the extent that they are available to pay the deficiency. The Tax Reform Act of 1984, Pub. L. 98-369, 98 Stat. 1031, retroactively waived the income tax liability determined…
1Opinion of the Court
OPINION
COHEN, Judge:
Respondent determined a deficiency of $516,365.63 in petitioners’ Federal estate tax. In an amendment to answer, respondent also asserted an additional deficiency of $58,678.62. The issues for decision are: (1) Whether gift tax paid by the donees of net gifts made within 3 years of decedent’s death is includable in decedent’s gross estate under section 2035(c);1 (2) whether petitioners are entitled to a deduction under section 2053(a)(3) for a Federal income tax claim arising from the net gift when the claim was retroactively waived by the Tax Reform Act of 1984; and (3)…
2Cases cited35 opinions
- United States v. American Trucking AssociationsSupreme Court of the United States · 1940
- Church of the Holy Trinity v. United StatesSupreme Court of the United States · 1892
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Old Colony Trust Co. v. CommissionerSupreme Court of the United States · 1929
- United Steelworkers of America v. WeberSupreme Court of the United States · 1979
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3Cited by56 opinions
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- Smith Ex Rel. Estate of Smith v. CommissionerCourt of Appeals for the Fifth Circuit · 1999
- Exxon Corp. v. CommissionerUnited States Tax Court · 1994
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