More Guidance for Gifts Under the Federal Gift Tax Annual Exclusion

Abstract

<p>The 2002 Tax Court case, <em>Hackl v. Commissioner,</em><strong>1 </strong>surprised some and the affirmance by the Seventh Circuit Court of Appeals in 2003 shocked even more although <em>Hackl </em>did not depart markedly from prior authority.<strong>2 </strong>Two more recent cases, <em>Price v. Commissioner</em><strong>3</strong> and <em>Wimmer v. Commissioner</em><strong>4 </strong>have provided more detailed guidance on the bounds of what is a “present interest” in the context of transfers to family members involving an entity.</p>