https://www.taxtmi.com/caselaws?id=70091 Gift-tax liability undertaken by donees under a deed does not reduce the open market value of gifted shares for gift-tax purposes because the liability arises only after completion of the gift and is not an existing encumbrance on the property. The arrangement is not treated as an onerous gift or as a transfer for inadequate consideration merely because the deed places the donor's tax burden on the donees. Accordingly, the tax liability borne by the donees is not deductible from the taxable value of the gifted property, and valuation is to be made without such reduction. en-us Mon, 16 Feb 1987 00:00:00 +0530 Thu, 14 Apr 2011 12:27:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=70091 Gift-tax liability undertaken by donees under a deed does not reduce the open market value of gifted shares for gift-tax purposes because the liability arises only after completion of the gift and is not an existing encumbrance on the property. The arrangement is not treated as an onerous gift or as a transfer for inadequate consideration merely because the deed places the donor's tax burden on the donees. Accordingly, the tax liability borne by the donees is not deductible from the taxable value of the gifted property, and valuation is to be made without such reduction. Case-Laws Income Tax Mon, 16 Feb 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=70091