Estate of Warne v. Commissioner

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Full Text of Court Cases
February 18, 2021
6519 Lessors of Real Property, NEC
531190 Lessors of Other Real Estate Property
federal taxation
business valuation, discount for lack of control (DLOC), discount rate, appraisal, discount, discount for lack of marketability (DLOM), fair market value (FMV), federal taxation, majority interest, operating agreement, gift, lack of control

Estate of Warne v. Commissioner
T.C. Memo 2021-17; 2021 Tax Ct. Memo LEXIS 22
US
Federal Court
Federal
United States Tax Court
Stephen Roach, Phillip Schwab, Jared Eichorst (Estate); Bradley Lofgren, Espen Robak (Commr.)
Buch

Summary

In a gift and estate tax dispute, the estate and Internal Revenue Service agreed to apply discounts for lack of control and marketability to the majority interests in a number of real estate holding companies. The U.S. Tax Court noted that, in prior decisions, the court found no discount for lack of control applied. However, given the parties’ agreement, here, the court said it would apply a “slight” or “low” discount.
Warne v. Commr.
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See Also

Tax Court Allows for ‘Slight’ Discount for Lack of Control for Majority Interests in Real Estate Holding Companies

In a gift and estate tax dispute, the estate and Internal Revenue Service agreed to apply discounts for lack of control and marketability to the majority interests in a number of real estate holding companies. The U.S. Tax Court noted that, in prior decisions, the court found no discount for lack of control applied. However, given the parties’ agreement, here, the court said it would apply a “slight” or “low” discount.