Conrad Janis v. CIR (Janis II)
The U.S. Court of Appeals for the Ninth Circuit affirmed the Tax Court’s determination of the fair market value of an inherited art collection for partnership basis purposes, inclusive of a blockage discount. The court also analyzed the duty of consistenc ...
Blockage Discount Reconsidered
The U.S. Court of Appeals for the 9th Circuit affirmed the Tax Court’s determination of the fair market value of an inherited art collection for partnership basis purposes, inclusive of a blockage discount.
Wechsler & Co. v. Commissioner of Internal Revenue
Court rejects reasonable compensation analysis for lack of reasonable comparables to broker/dealer in convertible securities ...
First Time Buy-Sell Agreement Meets Tax Court Requirements for Gift/Estate Valuation
Buy-sell agreement upheld for purposes of establishing estate tax value.
Lottery Winner Attempts Second Win on Discounted Present Value of Annuity
Court assesses whether fair market value of nonmarketable annuity varies from present value of IRC annuity tables.
‘Friends and Family’ Gifts of Private Stock Support 50% DLOM
Court considers whether family gifts of closely held stock were “arm's length,” sufficient to support 50% discounts.
Herbert V. Kohler v. CIR
The U.S. Tax Court determined the fair market value of a minority interest in a well-known manufacturer of kitchen and bath fixtures and accessories. The court rejected the IRS’s valuation as incredible because the expert carried no business valuation cre ...
Kohler et al. v. Commissioner of Internal Revenue
A “textbook case” on how to value a large, closely-held corporation, complete with discussion of dividend method and appropriate discounts. A total victory for the taxpayer.
Latest Court Looks at DLOM: Assumptions Are Everything
In gift/estate case, court considers discounts for lack of marketability and control for LLPs/LLCs and rejects flawed applications of QMDM and Mergerstat data.
‘Lockstep’ Transfers of Minority Interests Submerge—But Do Not Sink—Discounts
Contemporaneous, aggregate transfer of minority interests reduce (but don’t reverse) minority discounts.
Estate of Lillie Rosen v. CIR
The U.S. Tax Court applied a multifactor analysis to determine whether the objective facts indicated whether an FLP had a legitimate and substantial nontax purpose such that sec. 2036 did not apply to recapture the value of assets transferred to a family ...
Huber v. Commissioner
Court considers whether family gifts of closely-held stock were “arms length,” sufficient to support 50% discounts ...
Estate of Pearl I. Amlie v. Commissioner
Buy-sell agreement upheld for purposes of establishing estate tax value ...
Estate of Douglas L. Manship v. United States of America
The U.S. District Court for the Eastern District of Louisiana determined that document produced by an appraiser, who considered them in performing the valuations that were attached to the estate tax return, and who was listed an a testifying expert pursua ...
Court Finds Attorney-Client Privilege Waived in Connection With Documents Supplied to Estate’s Valuation Expert
The U.S. District Court for the Eastern District of Louisiana determined that documents produced by an appraiser, who considered them in performing the valuations that were attached to the estate tax return, were not covered by the work product or attorney-client privilege.
Koblick v. Internal Revenue Service
Contemporaneous, aggregate transfer of minority interests reduce (but don’t reverse) minority discounts.
Keeping It Simple Rules the Day on Partnership Discounts
Court accepts the net asset value and market approaches to valuing limited partnership interests, with discussion of discounts for lack of marketability, lack of control, and need for hard data.
Temple v. United States
In gift/estate case, Court considers discounts for lack of marketability and control for LLPs/LLCs and rejects flawed applications of QMDM and Mergerstat data.
Estate of Lorrain C. Disbrow v. CIR
The Tax Court determined that sec. 2036(a) applied to recapture of the value of a residence transferred to a general partnership and leased to the decedent where the decedent’s relationship to the residence did not materially change after the transfer, th ...
Valid Nontax Purpose for Transfer to Holding Company Does Not Save Subsequent Transfer to FLP
This case does a good job of reviewing most of the significant decisions in this area and can serve as a minireference guide to the latest in FLP law.
11th Circuit Disregards Changeable Buy-Sell Agreement, but Insurance Proceeds Used for Buyout Not Included in Value
As reported in the August 2004 issue of Business Valuation Update, the issue in this estate tax case was the value of George Blount’s (decedent’s) interest in a closely held company on the date of his death.
Transfer of Residence to Partnership Disregarded Under Sec. 2036
The Tax Court determined that sec. 2036(a) applied to recapture of the value of a residence transferred to a general partnership and leased to the decedent.
Robertson v. U.S.
Court accepts the net asset value and market approaches to valuing limited partnership interests, with discussion of discounts for lack of marketability, lack of control, and need for hard data.
Mark W. Senda and Michele Senda v. CIR (Senda II)
The U.S. Court of Appeals for the Eighth Circuit determined that a transfer of publicly stock to a family limited partnership (FLP) made close in time to a gift of FLP interests was an indirect gift of the pro rata share of the public stock for gift tax p ...
Standard Valuation Discounts Denied Where Limited Partnership Transaction Is Consolidated for Tax Purposes
The U.S. Court of Appeals for the 8th Circuit determined that a transfer of public stock to a family limited partnership (FLP) made close in time to a gift of FLP interests was an indirect gift of the pro rata share of the public stock for gift tax purposes.