5th Circuit Affirms Kerr; Partnership Agreement Restrictions Do Not Preclude Marketability Discount

Business Valuation UpdateVol. 8 No. 8
Legal and Court Case Update
August 2002
estate and gift taxation
gift tax

Kerr v. Commissioner (II)
292 F.3d 490, 2002 U.S. App. LEXIS 10965
June 10, 2002
Federal Court
5th Circuit
United States Court of Appeals
Howard Frazier Barker Elliot Inc.


This case is the 5th Circuit Court of Appeals' review of the Tax Court case, Kerr v. Commissioner, 113 T.C. No. 30 (U.S. Tax Ct. Dec. 23, 1999), abstracted by Mel Abraham in the February 2000 issue of both Shannon Pratt's Business Valuation Update and Judges & Lawyers Business Valuation Update.

See Also

Kerr v. Commissioner (II)

Issue was whether restrictions in partnership agreements were "applicable restrictions" to be disregarded in valuing the transferred interests, precluding a marketability discount.