Tax Court Adopts Substantial Discount for Embedded Capital Gains But Declines Per se Rule

Business Valuation UpdateVol. 16 No. 10
Legal and Court Case Update
October 2010
7032 Sporting and Recreational Camps
721214 Recreational and Vacation Camps (except Campgrounds)
federal taxation

Estate of Jensen v. Commissioner
2010 WL 3199784 (U.S. Tax Ct.)
August 10, 2010
US
Federal Court
Federal
United States Tax Court
Jack Mitnick, Michelle L.Maniscalco, Mindy K.Smolevitz
Klaris Thomson & Schroeder Inc. (IRS); Margolin Winer & Evans LLP (taxpayer)
Vasquez

Summary

Tax Court adopts the taxpayer’s dollar-for-dollar discount for embedded capital gains tax liability based on 2nd Circuit precedent and its own present-value analysis but specifically declines to adopt the per se rule of the 5th and 11th Circuits.

See Also

Estate of Jensen v. Commissioner

Tax Court adopts the taxpayer’s dollar-for-dollar discount for embedded capital gains tax liability based on 2nd Circuit precedent and its own present-value analysis, but specifically declines to adopt the per se rule of the 5th and 11th Circuits.