Common use of Amount of Reduction Clause in Contracts

Amount of Reduction. Except as otherwise provided in paragraphs (c)(3)(iv) (pertaining to transfers of partial interests) and (e) (pertaining to initial split gifts) of this section, the amount of the reduction is the lesser of— (1) The amount by which the initial transferor’s taxable gifts were in- creased as a result of the application of section 2701 to the initial transfer; or (2) The amount (determined under paragraph (c) of this section) dupli- cated in the transfer tax base at the time of the transfer of the section 2701 interest (the duplicated amount).

Appears in 2 contracts

Sources: Property Division Agreement, Property Conversion Agreement