Tax Court Corrects Prior Valuation of LP Interest to Startling Result

Business Valuation UpdateVol. 22 No. 10
BVLaw Case Update
October 2016

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0811 Timber Tracts
113110 Timber Tract Operations
federal taxation
family limited partnership (FLP), tax affecting, asset approach, cash flow, discounted cash flow (DCF), estate tax, going concern, net asset value approach (NAV), timber, deficiency, company specific risk, gross v. commissioner, liquidation of partnership
Estate of Giustina v. Commissioner (Giustina III)
2016 Tax Ct. Memo LEXIS 113
June 13, 2016
US
Federal Court
Federal
United States Tax Court
Robert Reilly (estate/petitioner); John Thomas (IRS/respondent)
Morrison

Summary

On remand Tax Court recalculates decedent’s minority LP interest in family partnership by relying entirely on DCF value and giving no weight to value of company’s timberland assets; newly calculated value is half the original value.

See Also

Tax Court Corrects Prior Valuation of LP Interest to Startling Result

Court Case Digests
June 13, 2016

On remand Tax Court recalculates decedent’s minority LP interest in family partnership by relying entirely on DCF value and giving no weight to value of company’s timberland assets; newly calculated value is half the original value.