4th Circuit Upholds No Minority Discount for 50% Interest in HUD Partnerships
At the time of his death, decedent owned a 50% interest in five general partnerships.
Lack of Present Economic Benefit Results in Finding of Future Interest
In the April 2002 issue of Shannon Pratt's Business Valuation Update, Owen Fiore and Erin Wilms discussed various attacks by the IRS on pass-through entities.
Stock Held Pursuant to GPA Aggregated With Stock Held Outright for Valuation Purposes
The full Tax Court reviewed this federal estate tax matter.
Gulig (Estate of Strangi) v. Commissioner (II)
The court of appeals found no obvious reason for the denial of the IRS's Section 2036 claim and remanded for consideration of the claim and revaluation if necessary.
Estate of Lewis Bailey v. CIR
The Tax Court considered the valuation of two 25 percent interests in a corporation that owned and operated motels. The corporation was valued by both parties using an adjusted net asset value method. That valuation method was accepted by the Tax Court. T ...
Marketability Discount Based on IPO and Restricted Stock Studies Rejected
The Tax Court considered the valuation of two 25% interests in a corporation that owned and operated motels.
Polack v. Commissioner (I)
The issue in this case was the valuation of taxpayer Polack's gift of 1,040,000 shares of Zip Sort, Inc. (ZSI) stock that he gifted to his children.
Kerr v. Commissioner (II)
Issue was whether restrictions in partnership agreements were "applicable restrictions" to be disregarded in valuing the transferred interests, precluding a marketability discount.
Net Gift Doctrine Not Applicable If Obligation Too Speculative
Decedent held a controlling interest in National Fruit Products Inc., a privately held corporation.
Court Rejects Adjusting Cap Rate Earnings to Apply to S Corporation
The issue in this estate tax matter is the fair market value of decedent William G. Adams Jr.'s 178 shares of voting common stock (a 61.59% interest) of Waddell Sluder Adams & Co., Inc. (WSA), an insurance agency that operated as an S corporation.
Estate of Harper v. Commissioner
Tax Court ruled that 100 percent of the property within the partnership, despite the fact that the partnership was validly formed, was includable in the gross estate under Sec. 2036 (a).
11th Circuit Affirms Shepherd v. Commissioner
This gift tax case is an appeal from the Tax Court's December 2000 decision, which was abstracted in the December 2000 issue of Shannon Pratt's Business Valuation Update®, at page 5.
Todd v. Commissioner
The only issue in this case was whether the petitioner, who formed a nonprofit corporation, was entitled to charitable deductions.
Estate of Godley v. Commissioner (II)
Estate argued that the question of whether decedents fifty percent interest represented a lack of control was a question of law. The Court of Appeals flatly disagreed.
Estate of Mitchell v. Commissioner (III)
The Tax Court, reaching the same final valuation conclusion, again applied a 35% discount on remand.
William Cavallaro; Patricia Cavallaro v. United States
The U.S. Court of Appeals for the First Circuit declined to quash the IRS’ subpoena of an accounting firm’s records relating to work it performed regarding transfer tax and merger issues for the petitioners, their sons and their companies. The court rejec ...
Accountant’s Documents Relating to Transfer Tax and Merger Issues Not Covered by Attorney-Client Privilege
The U.S. Court of Appeals for the 1st Circuit declined to quash the IRS’ subpoena of an accounting firm’s records relating to work it performed regarding transfer tax and merger issues for the petitioners, their sons, and their companies.
Estate of Fontana v. Commissioner
The issue was whether two blocks of stock had to be aggregated for valuation purposes.
Adams v. Commissioner
Business Valuation and Taxes: Procedure, Law and Perspective ...
Tax Court Decision Remanded to Explain Basis for 4% Discount Rate
The Tax Court opinion in this case was abstracted in the March 1998 issue of Shannon Pratt's Business Valuation Update ®.
Tax Court Rejects Use of Single 'Similar' Comparable
This issue in this estate tax matter was the fair market value of decedent's 630 shares (a 39.62% interest) in F. Korbel & Bros. Inc. on Feb. 15, 1995, her date of death.
Hackl v. Commissioner (I)
The issue was whether the gifts were present interests or future interests under Section 2503(b) of the tax code.
Gifts of Future Interest Do Not Qualify for Sec. 2503(b) Exclusion
The full Tax Court considered whether gifted LLC units subject to a restrictive operating agreement were gifts of a present or future interest in the gifted property for the purposes of the annual gift tax exclusion.
TAM 200212006
The IRS ruled that valuation discounts should not be applied to the value of government bonds indirectly gifted to the donor’s children through their interests in an FLP. The taxpayer relied on Shepherd v. Commissioner, 115 T.C. 376 (discounts applied to ...
Discount Inappropriate in Valuing Indirect Gifts
The IRS ruled that valuation discounts should not be applied to the value of government bonds indirectly gifted to the donor’s children through their interests in an FLP.