Gift Tax Case Suggests Overall Acceptance of S Corp Tax Affecting

BVLaw
Court Case Digests
March 26, 2019
2653 Corrugated and Solid Fiber Boxes
322211 Corrugated and Solid Fiber Box Manufacturing
estate and gift taxation
expert testimony, tax affecting, discount for lack of marketability (DLOM), fair market value (FMV), gift tax, s corporation, estate planning

Kress v. United States
2019 U.S. Dist. LEXIS 49850; 2019 WL 1352944
US
Federal Court
Wisconsin
United States District Court
John Emory, Nancy Czaplinski (plaintiffs/taxpayers); Francis Burns (defendant/government)
Griesbach

Summary

In gift tax case requiring valuation of minority shares in S corporation, district court accepts application, by all experts, of C corp-level tax rate to company’s earnings; court, with minor DLOM adjustment, credits valuations by taxpayers’ expert, noting his market approach is “the most sound.”

See Also

Kress v. United States

In gift tax case requiring valuation of minority shares in S corporation, district court accepts application, by all experts, of C corp-level tax rate to company’s earnings; court, with minor DLOM adjustment, credits valuations by taxpayers’ expert, noting his market approach is “the most sound.”

This article also appears in:
Business Valuation UpdateVol. 25 No. 6