Rev. Rul. 55-709

In 1943 and 1945, the taxpayer effected an equal division of community property and reported the transactions for Federal gift tax purposes as provided by the regulations then in effect. Specific exemption of $30,000.00 was applied by the taxpayer in determining the amount of net gifts for those years. No other gifts were reported for 1943 and 1945. the provision to the effect that a division of community property between husband and wife (after 1942 and on or before April 2, 1948) into separate property of each constituted a gift was eliminated from section 86.2(c) of Regulations 108 following the decisions by the Court of Appeals for the Ninth Circuit in Estate of Edwin W. Rickenberg v. Commissioner , 177 Fed.(2d) 114, and Commissioner v. Edward M. Mills , 183 Fed.(2d) 32. See T.D. 6015, C.B. 1953-1, 396. Accordingly, as the division of such property between husband and wife did not result in a gift, it follows that such division did not result in the use by the taxpayer of any portion of his specific exemption. It is therefore held that the specific exemption provided under the gift tax law may be claimed by the taxpayer with respect to gifts made in subsequent years