–Deeming rules
applies
§If the donor acquired the property through a “gifting arrangement” (donation tax shelter scheme)
§If the donor acquired the property less than 3 years before making the gift
§If the donor acquired the property less than 10 years before making the gift, and it was reasonable to conclude that when the donor acquired the property, one of the main reasons for the acquisition was to make a gift
§Also require a “look-back” to see if the property had been acquired within the last 10 years by a non-arm’s length person and if so then the “deemed fair market value” applies when that non-arm’s length person acquired the property
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