Section 1033 Election Does Not Prohibit Built-In Capital Gains Tax Deduction

Business Valuation Update BVLaw
Legal and Court Case Update
March 1, 2000
4911 Electric Services
221122 Electric Power Distribution
estate and gift taxation
estate tax, fair market value (FMV), minority shareholder, willing buyer, willing seller

Estate of Welch v. Commissioner (II)
2000 U.S. App. LEXIS 3315
Federal Court
6th Circuit
United States Court of Appeals
Mercer Capital (for Electric Service, Inc.)


The U.S. Court of Appeals for the Sixth Circuit reversed the Tax Court's decision denying the estate a deduction for built-in capital gains taxes embedded in four parcels for real property held by two closely held corporations. The parcels were under the ...

See Also

Estate of Welch v. Commissioner (II)

At issue is whether the estate had the right to discount the value of corporate stock to reflect a built-in capital gains tax liability on corporate real estate.