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Are Gift Demand Loans Of Tangible Property Subject To Gift Tax ?, Joseph M. Dodge

Joseph M Dodge

The publicity surrounding a prominent political figure’s rent-free use of a portion of a friend’s house in Washington, D.C., has raised the issue of whether the rent-free use of tangible property is a gift for federal gift tax purposes. The 1984 case of Dickman v. Commissioner, 465 U.S. 330 (1984), involving an interest-free demand loan of money, intimated that such might be the case, but there has apparently been no effort by the IRS to enforce such a position. The federal gift tax will be the only federal transfer tax left standing if the estate tax and generation-skipping tax are …