Mr. Coomb structured a transfer of real estate to his daughter as a sale. Upon audit, the IRS agent analyzed the economic consequences of the transfer and treated it as a gift by applying the:

Question

Quizplus · Accepted Answer

The substance over form doctrine allows the IRS to analyze the economic substance of a transaction and reclassify it based on its true nature. In this case, the transfer may have been structured as a sale on paper, but the economic reality of the transaction suggests that it was a gift. Therefore, the IRS agent could reclassify it as such under the substance over form doctrine.

Mr Coomb Structured a Transfer of Real Estate to His