Koch

Between December 20, 1938, and May 31, 1939, Adolph J. Koch, hereafter called decedent, transferred property (real estate, stocks, bonds, bank deposits and cash) of the value of $204,442.51. The transfers were made to the persons and in the amounts indicated below.

To George A. Koch, son of decedent . $102,440.

To Ralph J. Swickard, grandson of decedent. 21,000.

To George A. Koch, trustee, in trust for Ralph J. Swickard 79,001.

To Mollie Koch (Mrs. Valentine Koch), sister-in-law of decedent . 1,000.

To Daisy Koch, niece of decedent . 1,000.

Total . $204,442.

Decedent died on June 29, 1939. As executor of decedent’s last will, petitioner, George A. Koch, filed an estate tax return on October 19, 1939, and paid an estate tax based on that return. In that return, the value of decedent’s gross estate was stated to be $142,605.39. In determining that value, petitioner did not include the value of the transferred property ($204,442.51) or any part thereof. Respondent, the Commissioner of Internal Revenue, held that the value of the transferred property should have been included. He accordingly determined at estate tax deficiency of $22,544.-18. Petitioner thereupon…