Any item or service received for property transferred or assigned is within the meaning of the phrase "full and adequate consideration in money or money's worth" if the value of the item or service equals the reasonable market value of the property transferred or assigned. If property is transferred or assigned without full and adequate consideration, the fair market value, determined according to § 67:12:04:10.01, less encumbrances of record, must be used in determining if the recipient received the full and adequate consideration in money or money's worth.

Source: SL 1975, ch 16, § 1; 3 SDR 52, effective January 27, 1977; 7 SDR 66, 7 SDR 89, effective July 1, 1981; 12 SDR 112, effective January 16, 1986 ; 52 SDR 55, effective December 2, 2025 .

General Authority: SDCL 28- 6-1 .

Law Implemented: SDCL 28- 6-1 .

Prior versions effective: 1986-01-16.