Tax Court Overrules McCord

The Tax Court ruled in Steinberg that a gift’s fair market value may be reduced by the donees’ assumption of the donor’s potential estate tax liability that is attributable to the gift.

The Steinberg decision overrules the Tax Court’s previous decision in McCord.

See Matthew A. Levitsky, United States: The Assumption of Estate Tax Liability May Reduce the Value of a Gift: The Tax Court Overrules McCord, Mondaq, Jan. 16, 2014.