https://www.taxtmi.com/caselaws?id=61795 Deduction in valuing gifted property is limited to liabilities or encumbrances existing before the gift takes effect. A gift-tax liability arises only after completion of the gift, and the statutory primary liability rests on the donor; an agreement under which the donee undertakes to pay that tax does not turn the contingent tax burden into a pre-existing charge on the property. Authorities dealing with antecedent liabilities or charges were therefore distinguishable. On that basis, gift-tax liability was not an allowable deduction in determining the value of the gifted property. en-us Thu, 01 Feb 1990 00:00:00 +0530 Sat, 15 Jan 2011 11:02:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=61795 Deduction in valuing gifted property is limited to liabilities or encumbrances existing before the gift takes effect. A gift-tax liability arises only after completion of the gift, and the statutory primary liability rests on the donor; an agreement under which the donee undertakes to pay that tax does not turn the contingent tax burden into a pre-existing charge on the property. Authorities dealing with antecedent liabilities or charges were therefore distinguishable. On that basis, gift-tax liability was not an allowable deduction in determining the value of the gifted property. Case-Laws Income Tax Thu, 01 Feb 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=61795