2nd Circuit Reverses Eisenberg, Allows Discount for Capital Gains Tax

Business Valuation UpdateVol. 4 No. 10
Legal and Court Case Update
October 1998
6719 Offices of Holding Companies, NEC
551112 Offices of Other Holding Companies
estate and gift taxation
fair market value (FMV)

Eisenberg v. Commissioner
155 F.3d 50, 1998 U.S. App. LEXIS 20109
August 18, 1998
Federal Court
2nd Circuit
United States Court of Appeals


This decision reverses the U.S. Tax Court decision, which disallowed a discount from net asset value reflecting potential capital gains taxes for a C corporation with a piece of commercial real estate as its major asset.

See Also

Eisenberg v. Commissioner

At issue is the valuation reduction for capital gains tax liabilities of appellant's gifted shares of stock.