Guy died this year. His estate includes a closely held business interest valued at $400,000 and other property valued at $675,000. Guy's allowable Sec. 2053 and 2054 deductions total $75,000. Within three years of death, partly in hopes of qualifying his estate for the installment payment allowed under Sec. 6166 treatment, Guy made gifts of listed securities of $350,000 (at 2002 valuations) and
paid no gift tax on the gift. Is Guy's estate eligible for Sec. 6166 treatment?
What will be an ideal response?
No, it fails the 35% test in one of the calculations.
Excluding gifts: $400,000 / $1,000,000 = 40%
Including gifts: $400,000 / $1,350,000 = 29.63%
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