Common use of Reduction for consideration Clause in Contracts

Reduction for consideration. The amount of the transfer (determined under section 2701) is reduced by the amount of consideration in money or money’s worth received by the trans- feror, but not in excess of the amount of the gift (determined without regard to section 2701). The value of consider- ation received by the transferor in the form of an applicable retained interest in the entity is determined under sec- tion 2701 except that, in the case of a contribution to capital, the Step 4 value of such an interest is zero.