Court Accepts Taxpayer's Expert Value Despite Taxpayer Protests
The issues in this estate tax matter were as follows: the fair market value of Frank DiSanto's (Frank) 186,177 shares (53.5%) of stock in Morganton Dyeing & Finishing Corp. (MD&F) on his date of death; and the fair market value of the MD&F stock Grace DiSanto (Grace) was entitled to inherit from Frank's estate (a minority interest) on his date of death.
Estate of Maggos v. Commissioner
Business Valuation and Taxes: Procedure, Law and Perspective ...
Redemption for Less Than Fair Market Value Is Taxable Gift
The issue in this case is whether the decedent's redemption of 567 shares to Pepsi-Cola Alton Bottling Inc. (PCAB) was indeed a gift to her son, who ran the company.
Earnings Methods Used to Value Pepsi-Cola Bottler
The Tax Court determined the value of decedent's controlling interest in a bottling company for the gift tax.
Equipment Company Valuation Turns on Asset- and Earnings-Based Values
The fair market value of 492,610 shares of stock in Dunn Equipment Inc. is in dispute in this case.
Taxpayer Victory on FLP Recognition
On Jan. 18, 2000, Judge Orlando Garcia of the United States District Court ruled in favor of the taxpayer in the first family limited partnership case to be tried in a federal district court.
Estate of Reichardt v. Commissioner
114 T.C. No. 9 UNITED STATES TAX COURT ESTATE OF CHARLES E. REICHARDT, DECEASED, WILLIAM D. REICHARDT, INDEPENDENT EXECUTOR, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 1224-98. Filed March 1, 2000. Decedent (D) had two children, C and W. On June 17, 1993, D formed a revocable family trust (the trust) and a family limited partnership (the partnership). The trust was the general partner of the partnership. D, C, and W were ...
Value of Assets Transferred to a Limited Partnership Is Included in Decedent’s Gross Estate
The Tax Court determined that the estate must include the value of partial interests in real property in its gross estate under IRC sec. 2036. The decedent owned interests and life interest in real property. He had the power to consume the property in w ...
Section 1033 Election Does Not Prohibit Built-In Capital Gains Tax Deduction
The U.S. Court of Appeals for the Sixth Circuit reversed the Tax Court's decision denying the estate a deduction for built-in capital gains taxes embedded in four parcels for real property held by two closely held corporations. The parcels were under the ...
Estate of Welch v. Commissioner (II)
At issue is whether the estate had the right to discount the value of corporate stock to reflect a built-in capital gains tax liability on corporate real estate.
6th Circuit Estate Tax Appeal Allows Capital Gains Discount
The issue in this estate tax appeal is whether the petitioners were entitled to apply a discount for a built-in capital gains tax liability on real estate in valuing the stock of the corporation owning the real estate.
Assets Controlled by Decedent After Transfer 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 to Reichardt Partners Ltd., a family limited partnership of which the trust was the only general partner.
A Gift for Taxpayers and FLPs?
The Tax Court in this gift tax case has issued the first guidance on some of the tax issues facing family limited partnerships (FLPs).
Estate of Frank Armstrong, Jr. v. United States of America
A magistrate for the District Court for the Western District of Virginia denied the estate a valuation reduction for estate taxes and attendant costs paid by the estate after the gifts had been included in the decedent's gross estate because the gifts wer ...
Contingencies Do Not Reduce the Value of Stock When They Are Speculative on the Date of Transfer
The U.S. District Court for the Western District for Virginia considered the value of stock gifted to the decedent's children within three years of the decedent's death.
Estate of Stevens v. Commissioner
In valuing 50% undivided interest in three commercial real properties, Tax Court rejects limiting discounts to costs of partitioning, finding 25% discount is appropriate for all properties and is in line with factor analysis for fractional interests.
Tax Court Rejects QMDM and Use of Single Comparable
In this estate tax matter, the Tax Court addressed basic valuation issues dealing with minority interest and illiquidity discounts in the context of a limited partnership interest.
Weinberg v. Commissioner
At issue is the fair market value of a limited partnership interest over which the decedent had a general power of appointment on the date of her death.
Church v. United States (I)
At issue is whether a partnership transaction was entered into for no purpose other than to reduce the taxation of Mrs. Church's estate.
Family Limited Partnership Formed Two Days Before Death Not Sham Transaction
The primary issue in this estate tax refund action was whether Stumberg Ranch Partners Ltd. was formed for a bona fide business purpose, or was a sham transaction designed to avoid estate and gift taxes.
No Gift Tax Due When Partnership Was Formed Two Days Before Death
The U.S. District Court for the Western District of Texas rejected the IRS' position that gift tax was due on the formation of a family limited partnership formed two days before the decedent's death.
Estate of Dunn v. Commissioner (I)
At issue is the fair market value of 492, 610 shares of Dunn Equipment.
Estate of Busch v. Commissioner
At issue is the fair market value of certain real property.
Estate of Brocato v. Commissioner
At issue is whether respondent is equitably estopped from assessing additional estate tax, and if not, the proper amount of blockage and fractional interest discounts to be applied to petitioner’s nine real properties must be determined.
11% Blockage Discount Applied in Apartment Valuations
The taxpayer in this estate tax matter was granted a 20% fractional interest discount and an 11% blockage discount with apartment house properties, based on comparable sales and an analysis of market conditions and the economy.