Steve R. Akers, of Bessemer Trust, has published his summary of the Estate of Bolles v. Commissioner, T.C. Memo. 2020-71 –Treatment of Advances as Legitimate. The summary is as follows:
Estate of Bolles v. Commissioner, T.C. Memo. 2020-71, addresses whether advances made to a son with no loan agreements, security, or attempts to force repayment were legitimate loans or were gifts. The summary addresses other transfer tax related contexts in which the loan vs. equity transfer issue may be important. The summary also discusses the IRS published position that an upfront gift arises when a loan is made if the lender intends later to forgive the loan (though the IRS did not make that allegation in this case).
Posted by David Brito, Associate Editor, Wealth Strategies Journal.