Case Summaries Estate of Bolles v. Commissioner, T.C. Memo. 2020-71 –Treatment of Advances as Legitimate Loans vs. Gifts

Steve R. Akers

Jul 24, 2020
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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). 

Senior Fiduciary Counsel
Steve serves as Chair of the firm’s Estate Planning Committee and works closely with clients in the Southwest Region regarding their estate and trust planning issues.