Estate of Winifred Hughes v. CIR
The U.S. Tax Court determined that the amount paid on a demand note after the death of the decedent was not deductible under sec. 2053 as a claim against the estate because the transaction was not bona fide nor completed at arm’s-length. In reaching this ...
Presence of Independent Valuation One Factor in Determining Whether Note Transaction Was Bona Fide
The U.S. Tax Court determined that the amount paid on a demand note after the death of the decedent was not deductible under sec. 2053 as a claim against the estate because the transaction was not bona fide nor completed at arm’s-length.
Davis v. United States
Court assesses whether fair market value of non-marketable annuity varies from present value of IRC annuity tables ...
Estate of Doris F. Kahn v. CIR
The full Tax Court concluded that a discount was not applicable to individual retirement accounts (IRAs) to account for the built-in gains that would be taxable to estate or beneficiaries upon their distribution. It rejected various analogies to lottery p ...
No Discounts Applicable to IRAs
The full Tax Court concluded that a discount was not applicable to individual retirement accounts (IRAs) to account for the built-in gains that would be taxable to estate or beneficiaries upon their distribution.
Estate of Blount v. Commissioner (II)
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.
United States of America v. Gordon E. Davenport
he U.S. District Court for the Southern District of Texas excluded an expert’s valuation because it failed to take into account the fact that the donor of the gifted stock did not have clear title to that stock because the stock was the subject of estate ...
Value of Gifted Stock Must Incorporate Effect of Clouded Title
The U.S. District Court for the Southern District of Texas excluded an expert’s valuation because it failed to take into account the fact that the donor of the gifted stock did not have clear title to that stock.
Estate of Webster E. Kelley v. CIR
The U.S. Tax Court determined the appropriate lack of marketability and minority interest discounts to apply to an interest in a family limited liability partnership holding cash and certificates of deposit. The minority discount was based on the arithme ...
Estate of Kelley v. Commissioner
In April 1999, Webster Kelley and his daughter and son-in-law ("the Loudens") formed Kelley-Louden Business Properties, LLC (KLBP LLC), and Kelley-Louden, Ltd., a family limited partnership (KLLP).
Keller v. United States (I)
In this estate tax case, portions of an appraisal report were challenged as inadmissible.
Sec. 2036 Exception Requires Case-By-Case Analysis
The U.S. District Court for the Southern District of Texas denied the government’s motion for summary judgment on the issue of the applicability of sec. 2036 to look through a FLP.
Rayford L. Keller v. United States of America
The U.S. District Court for the Southern District of Texas denied the government’s motion for summary judgment on the issue of the applicability of sec. 2036 to look through a FLP. It determined that Kimbell and Strangi require a case-by-case analysis of ...
Hypothetical Partition Discount Is Insufficient for Fractionalized, Noncontrolling Interests
In this estate tax case, the issue was whether the IRS' position in applying discounts to fractional, noncontrolling interests in timberland was justified for purposes of determining whether taxpayers were entitled to administrative and litigation costs.
5th Circuit Affirms Tax Court’s Application of § 2036 to FLP Assets
In this last installment of the Strangi case, the 5th Circuit affirmed the Tax Court’s decision on remand that Strangi had retained enjoyment of the assets he had transferred to Strangi Family Limited Partnership (SFLP) and Stranco, Inc. through an implied agreement, and, thus, that the transferred assets were properly included in his estate under IRC Section 2036(a) for estate tax purposes.
Another FLP Bites the 2036 Bullet
In this estate tax case, the issue was whether the value of assets contributed to a family limited partnership (FLP) was includable in the decedent’s gross estate; the Tax Court held it was.
FLP Disregarded Where Decedent Retains Insufficient Funds
In this estate tax case, the issue was whether the value of real property transferred to a family limited partnership (FLP) was included in Bigelow’s (decedent’s) gross estate.
Built-In Capital Gains Liability of Small Minority Interest Should Be Discounted to Reflect Time Value of Money
The issues in this estate tax case were whether built-in capital gains tax liability should be discounted (indexed) to account for time value and the appropriate discounts for lack of marketability and control.
1st Circuit Affirms FLP Case Against Taxpayer
The 1st Circuit affirmed all aspects of a Tax Court determination unfavorable to the estate of Ida Abraham (the Estate).
Transfers of Stock to Business Trusts Not Included in Decedent’s Gross Estate
Schutt, I, Business Trust (Schutt I) and Schutt, II, Business Trust (Schutt II), both Delaware business trusts, were formed in 1998.
Favorable Buy-Sell Provision Disregarded Where Decedent Controlled FLP in Life
A Magistrate for the U.S. District Court of the Western District of Pennsylvania granted a motion for summary judgment applying of sec. 2703 to disregard a buy-sell provision in a FLP agreement, and thus, disregard the valuation decrement occasioned by th ...
Smith v. U.S. (II)
A Magistrate for the U.S. District Court of the Western District of Pennsylvania granted a motion for summary judgment applying of sec. 2703 to disregard a buy-sell provision in a FLP agreement, and thus, disregard the valuation decrement occasioned by th ...
Estate of Strangi v. Commissioner (IV)
In this last installment of the Strangi case, the Fifth Circuit affirmed the Tax Court's decision on remand that Strangi had retained enjoyment of the assets he had transferred to Strangi Family Limited Partnership (SFLP) and Stranco, Inc.
Estate of Baird v. Commissioner
In this estate tax case, the issue was whether the IRS's position in applying discounts to fractional, non-controlling interests in timberland was justified.
Estate of Jelke v. Commissioner (I)
The issues in this estate tax case were whether built-in capital gains tax liability should be discounted (indexed) to account for time value, and the appropriate discounts for lack of marketability and control.