[Code of Federal Regulations]
[Title 26, Volume 14]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR25.2512-4]

[Page 543]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 25_GIFT TAX; GIFTS MADE AFTER DECEMBER 31, 1954--Table of Contents
 
Sec.  25.2512-4  Valuation of notes.

    The fair market value of notes, secured or unsecured, is presumed to 
be the amount of unpaid principal, plus accrued interest to the date of 
the gift, unless the donor establishes a lower value. Unless returned at 
face value, plus accrued interest, it must be shown by satisfactory 
evidence that the note is worth less than the unpaid amount (because of 
the interest rate, or date of maturity, or other cause), or that the 
note is uncollectible in part (by reason of the insolvency of the party 
or parties liable, or for other cause), and that the property, if any, 
pledged or mortgaged as security is insufficient to satisfy it.