9th Circuit Reverses Kaufman; Actual Sales Best Evidence
This case is the 9th Circuit Court of Appeals' decision on appeal of Estate of Kaufman v. Commissioner, T.C. Memo 1999-119 (1999), which was abstracted in the May 1999 Business Valuation Update.
The IRS' 'More Reliable' Valuation Accepted Over Estate Valuation
This case involves a hearing on remand from the 9th Circuit to provide sufficient analysis of the consideration value of common and preferred stock in two closely held companies transferred and received by Cyril Magnin, the life estate holder.
Tax Court Considers QMDM and Restricted Stock Studies in Determining Discount for Lack of Marketability
In November 1992, the Petitioners gifted shares of St. Edward Management Co. (the "Company") common stock to their children.
Wall v. Commissioner
The issue was the fair market value of 9,380 shares of the company's nonvoting common stock, which the majority shareholder gifted into trusts.
Tax Court Criticizes Experts' Application of Market Approach and Income Approach
This was a gift tax valuation case in which the sole issue for decision was the fair market value of 9,380 shares of the company's nonvoting common stock, which the majority shareholder gifted into trusts for the benefit of his children.
Estate of Forbes v. Commissioner
Issue is fair market value of 42% and 42.9% undivided interests in two real estate parcels held by the QTIP, and what fractional discount should apply.
Estate of Augusta Porter Forbes v. CIR
The Tax Court considered the application of a fractional interest discount to a 42 percent undivided interest in real property, exclusive of improvements, timber, crops, and profits on or generated by the property. The real property was held in a QTIP tru ...
Estate of Evelyn M. McMorris v. CIR
The Tenth Circuit Court of Appeals decided an issue of first impression. It ruled that claims against an estate, being deductible under IRC Sec. 2053 (a)(3), should be valued as of the date of death. Thus, it reversed the Tax Court and refused to permit t ...
Post-Death Events May Not Affect Estate Valuation
The 10th Circuit Court of Appeals decided an issue of first impression.
Morrissey v. Commissioner
FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT JAMES J. MORRISSEY; ALAN S. BERCUTT, C.P.A.; DIANE FANTL, Co-executors of the Estate of Alice Friedlander Kaufman, No. 99-71013 Deceased, Tax Ct. No. Petitioners-Appellants, 17050-97 v. OPINION COMMISSIONER OF INTERNAL REVENUE, Respondent-Appellee. Appeal from a Decision of the United States Tax Court Argued and Submitted February 14, 2001--San Francisco, California Filed March 15, 2001 Before: Procter Hug, Jr., John T. Noonan, and William ...
Transactions Occurring Shortly After the Valuation Date Are Probative
The U.S. Court of Appeals for the 9th Circuit considered the Tax Court’s valuation of an Oklahoma company holding a uniform manufacturer in Estate of Kaufman v. CIR, T.C. Memo. 1999-119.
Estate of Gribauskas v. Commissioner
At issue is whether an interest held at death by Paul C. Gribauskas (decedent), in 18 annual installments of a lottery prize, must be valued for estate tax purposes.
Estate of Jones v. Commissioner
Business Valuation and Taxes: Procedure, Law and Perspective ...
No Built-In Gains Discount in FLP Valuation
This tax case concerned limited partnership interests gifted to family member partners.
Estate of Cyril I. Magnin v. CIR (III)
The Tax Court considered whether a decedent received adequate and full consideration under an agreement executed in 1951. The Ninth Circuit determined that the proper measure of valuing adequate and full consideration was the actuarial value of the remain ...
Donald J. Janda v. CIR
The U.S. Tax Court valued minority interests in a company holding cash, marketable security and a controlling interest in a rural bank. The bank was valued by reference to comparable sales of privately held rural banks. The company was valued using its ne ...
Janda v. Commissioner
In November 1992, the Petitioners gifted shares of St. Edward Management Company (the "Company") common stock to their children. Each gift represented approximately 5.3% of the outstanding shares of common stock. St. Edward Management Co. owned 94.6% of the common stock of the Bank of St. Edward (the Bank), a bank located in a small agricultural community in Nebraska.
FLPs Shall Not Be Disregarded for Gift Tax Purposes
In this case, the Tax Court determined that a Texas family limited partnership could not be ignored for valuation purposes and that § 2704(b) did not apply.
Same Day Case Makes Interesting Addendum to Knight
In 1993 and 1994, decedent Albert Strangi was suffering severe medical problems.
Assets transferred to FLP part of estate
Prior to his death, decedent transferred his life interest in his residence, rental properties and other real properties, and investment accounts to the Reichardt Family Trust and Reichardt ...
All Tax Court Judges Have Something to Say in FLP Gift Case
The taxpayer owned 50% of a newly formed family partnership, and his two sons each owned 25%.
Assignee's Interest in Partnership May Require Discounting
The issue in this estate tax matter is whether discounts for lack of marketability, minority status, and poor portfolio diversity should be applied in valuing the decedent's 25% interest in a Texas general partnership, which decedent held as an assignee.
FSA 200049003
The Internal Revenue Service stated its positions regarding the recapture of the value of assets transferred to a closely held LLC for gift and estate tax purposes. It holds that the economic substance doctrine applies, IRC sec. 2703(a) is applicable, IRC ...
IRS Released Its Positions Regarding Limited Liability Companies
The Internal Revenue Service stated its positions regarding the recapture of the value of assets transferred to a closely held LLC for gift and estate tax purposes.
Estate of Strangi v. Commissioner (I)
At issue is the fair market value of decedent's interest in the Strangi Family Limited Partnership at the date of death.