FLP Formalities Should Be Respected in Order to Obtain Tax Advantages of the FLP
The U.S. Tax Court determined that the limited partnership form should be disregarded for gift tax purposes when the contribution of property occurred on the same day as gifts of limited partnership units from the contributor to his children.
Smith v. U.S. (I)
A Magistrate for the U.S. District Court for the Western District of Pennsylvania determined on summary judgment that Sec. 2703(a) applied to disregard restrictions on the transfer of FLP interest contained in the FLP agreement. This was an issue of first ...
Smith v. U.S. (I)
This case was an order resulting from motions for summary judgment.
Continued Enjoyment of Property Leads to Disregard of FLPs
The issue in this estate tax case was whether three family limited partnerships (FLPs) should be respected for estate tax purposes.
Tax Court Disregards FLP That Taxpayer Disregarded
The issues in this estate tax case were whether the court should disregard a family limited partnership (FLP) under IRC Section 2036(a) and the fair market value of the assets of the partnership.
Kimbell v. US
At issue is the transferral of assets for an interest in partnership (operated by decedent's son) was a "bona fide" sale or not, thus incurring Section 2036 consideration.
Janis v. Commissioner
In this tax case the issue was the value of an art gallery.
Petitioners’ Basis in Inherited Art Collection Is the Value Determined for Federal Estate Tax Purposes
The U.S. Tax Court determined the petitioners’ basis in an art collection inherited from their father.
Estate of Blount v. Commissioner (I)
The issue in this estate tax case was the value of decedent’s interest in a closely held company on the date of his death.
In re Trust of Lang v. Chemical Bank
In this case one issue was the value of the companies shares owned by the decedent.
Polack v. Commissioner (II)
Earnings for the relevant valuation date determined after the valuation deemed irrelevant because a "prospective buyer could not have known" at that time ...
Robert v. United States
Issue in this gift tax case was whether IRS summonses should be quashed due to improper ex parte communications between the IRS Appeals Office and Examination Division.
Tax Court Increases Discount Rate on Remand
The original Tax Court opinion in this case was abstracted in the March 1998 issue of the Business Valuation Update, where a full recitation of the facts can be found.
Okerlund v. United States (II)
Events after the donation date, though foreseen in Dr. Pratt's valuation do not constitute reversiible error on the part of the Claims court for rejecting the valuation.
Estate of Hillgren v. Commissioner
At issue is the validity of discounts applied taking into consideration a business loan agreement.
Estate wins 2036 (a) challenge; FLPs did more than "recycle value"`
The only issue in these consolidated cases was whether assets owned by each of five family limited partnerships (FLPs) were includible in the gross estates of Mr. and Mrs. Stone under I.R.C.
DLOM Major Issue; Tax Court 'Splits the Baby'
At decedent’s death, she owned 3,276 shares of Royal Bancshares Inc. (RBI), or 5.09% of the outstanding RBI shares.
Estate of Abraham v. Commissioner (I)
At issue is the inclusion of certain properties in the gross estate which decedent had transferred while alive but from which retained generated income.
Estate of Trompeter v. Commissioner (III)
The Tax Court, on remand from the Ninth Circuit, reconsidered and explained its present value methodology and discount rate applied when determining the fair market value of preferred stock. It adjusted the discount rate from 4%, accounting solely for the ...
Estate of Green v. Commissioner
DLOM supported by restricted stock studies upheld while neither expert's minority interest discounts are upheld for lack of supporting analysis (therefore higher discount used).
Tax Court displeased with all experts’ DLOC and DLOM analyses
The primary issues in this gift tax case were the appropriate discounts for lack of control and lack of marketability to apply to gifted and sold interests of a family limited partnership.
Court Uses Raw Data From Bajaj Study to Determine DLOM
The only issue in this case was the fair market value of gifted family limited partnership (FLP) interests.
Estate of Cook v. Commissioner
At issue is the classification of a lottery prize issued in annual payments as a private annuity, thereby being valued using annuity tables (by the Tax Court) and thus without discounts.
5th Circuit Considered the Valuation of Lottery Payments
The U.S. Court of Appeals considered whether deviation from the annuity tables in Sec. 7520 was warranted in the valuation of a lottery prize.
Estate of Stone v. Commissioner
At issue is the inclusion of assets of five various family limited partnerships in the gross estates of Mr. and Ms. Stone under section(s) 2036 and 2044.