@Lonestar wrote:
3) Lastly, funny you mention the Codes on this topic. I had prepared a great response to @ColeenD3 and tried to post it but got dinged for post flooding since it had not been 60 mins since my last post. Later, it had all disappeared! I was pointing to those Codes and seemed to have substantiated my claim that 100% of the FMV should be used... refer to 20.2040-1 Joint interests;
I have the opportunity to get some free legal advice from a tax lawyer, hopefully tomorrow. If that's not enough to get an answer, I'll pursue the estate lawyer route.
Thoughts on talking to the IRS directly? Good or bad idea? LOL
Two comments:
Do be careful drawing conclusions from reading a publication or specific code section or regulation. Yes, it is super helpful to do that and see what they say. Especially to inform yourself before hiring a lawyer. However, you don't have the experience to know if that particular section applies in your situation or whether there is an exception hiding five sections away. That is why it is a very good idea to get professional advice from someone who does know the bigger picture of the statutory scheme.
As I think @ColeenD3 wrote earlier the examples seem to be about consideration at the time of purchase not a gift sometime later. That could mean the examples don't apply in your situation. Or they could apply. But making that judgement requires understanding more than those sections in isolation.
Re: talking to the IRS. Don't bother. First they are so swamped you can't actually reach anyone. Secondly even if you did reach someone it is unlikely they would really know the answer. Finally even if they were to tell you an answer you cannot count on that to be correct. the basic legal principle of "administrative estoppel" is that an agency cannot change the law by giving an incorrect answer. The law is what it is. The best you can do is perhaps to avoid a penalty because relying on the answer from the agency was relying on reasonable advice.
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