Ezel / IRS Rulings / 1142025
Chief Counsel Advice 1142025 Released October 21, 2011 Advice

CCA 1142025: A gift of most section 6166 property accelerates the estate-tax election

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This page covers one taxpayer's ruling from 2011, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2011
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It resolved one taxpayer's situation on its specific facts, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

Chief Counsel advised that a gift of 51% of section 6166 property to other family members would be an accelerating event under section 6166(g). The statute ends the election when 50% or more of the interest is distributed, sold, exchanged, or otherwise disposed of, and the advice treats a gift as a disposition. The exception for transfers to family members applies only when the transfer occurs by reason of the transferor's death.

Ruling snapshot

  • Question: Does gifting 51% of section 6166 property to family members end the section 6166 election?
  • Outcome: Advice given
  • Key authorities: IRC § 6166(g)

Full text (IRS public release)

ID: CCA_2011101111181147 Number: 201142025
Release Date: 10/21/2011
Office: -------------
UILC: 6166.00-00

From: -----------------------
Sent: Tuesday, October 11, 2011 11:18:20 AM
To: -----------------------
Cc: --------------------------
Subject: 6166 question

Hi--sorry I missed your call last week and I know you are out this week. You had suggested that, while you are out, I respond to ------------------------, so I have copied her.

If I understood your VMS correctly, you had a question about whether a distribution of 51% of the section 6166 property to other family members via gift was an accelerating event for purposes of section 6166(g). Section 6166(g) provides that the election ceases to apply when 50% or more of the interest is "distributed, sold, exchanged, or otherwise disposed of". This is very broad language used to cover any situation in which the subject property ceases to form part of the gross estate. This would include property disposed of via gift. There is an exception for transfers of property to family members, but only when the transfers are by reason of death of tranferor.

Let me know if you have further questions or if I misunderstood your facts. I am still working on your other question about the multiple appeal opportunities following missed installment payments.

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