Keller v. United States
5th Circuit affirms district court findings that overall intent of widow was to establish a family limited partnership (FLP), despite funding but failing to finalize its formation; accordingly, the court upheld the 47.%% combined discounts applied to the ...
Tax Court Resolves ‘Mismatch’ Between FLP Values and Marital Deduction
On a motion for reconsideration, Tax Court finds no new evidence or rationale to reverse its prior opinion, which included the value of family limited partnership assets in the gross estate; it also found the estate was not entitled to claim the marital d ...
Well-Planned FLP Survives IRS Challenge
Tax Court excludes the value of family limited partnership assets from the decedent’s gross estate, finding that her desires to ensure an equal distribution of the assets to her heirs as well as manage the properties were legitimate, nontax reasons to tra ...
Tax Court Validates Defined Value Clause for Interfamily Transfers
Tax Court upholds defined value clause in transfers of family LLC interests, overruling IRS’s public policy concerns, among other arguments.
9th Circuit Permits Subsequent Events in Valuing Uncertain Claims
Ninth Circuit confirms that post-death events are relevant when valuing a disputed or contingent claim against an estate; subsequent events are irrelevant only when the claim is certain and enforceable.
Estate of Turner v. Commissioner (II)
On a motion for reconsideration, Tax Court finds no new evidence or rationale to reverse its prior opinion, which included the value of family limited partnership assets in the gross estate; it also found the estate was not entitled to claim the marital d ...
$36M Executive Stock Option: Was it Reasonable, Contingent Compensation?
Tax Court finds $36 million exercise of executive stock option was taxable income to the shareholder, but permitted company to take the same amount as deduction for reasonable compensation for the executive’s services.
Wandry v. Commissioner
Tax Court upholds defined value clause in transfers of family LLC interests, overruling IRS’s public policy concerns, among other arguments.
Estate of Kelly v. Commissioner
Tax Court excludes the value of family limited partnership assets from the decedent’s gross estate, finding that her desires to ensure an equal distribution of the assets to her heirs as well as manage the properties were legitimate, nontax reasons to tra ...
Estate of Stone v. Commissioner
Tax Court holds transfer of woodlands to FLP outside reach of Section 2036(a); “bona fide sale” was present even though partnership conducted no business or investment activity, had no bank account, and caused no change in use or enjoyment of property.
Estate of Stone v. Commissioner
A husband and wife owned 740 acres of undeveloped woodland, which, on the advice of their attorney, they transferred to a family limited partnership (FLP). They each retained a 1% general partnership interest, but over the years began gifting limited part ...
Marshall Naify Revocable Trust v. United States
Ninth Circuit confirms that post-death events are relevant when valuing a disputed or contingent claim against an estate; subsequent events are irrelevant only when the claim is certain and enforceable.
Tax Court Corrects Present Value Factor in Gallagher
Tax Court corrects a previous error in the present value factor used to value an 80% interest in a privately held limited partnership, resulting in a $3.2 million increase in overall value.
Davis v. Commissioner (I)
Tax Court finds $36 million exercise of executive stock option was taxable income to the shareholder, but permitted company to take the same amount as deduction for reasonable compensation for the executive’s services.
‘Standard Form’ FLP Fails to Establish Nontax Purpose
Tax Court includes full value of family limited partnership assets in the gross estate after finding that their nature (passive investments in cash and marketable securities) provided no legitimate, nontax reason for their consolidation or management.
Noncompete Transfers Professional Goodwill to Practice for Tax Purposes
9th circuit upholds finding that a noncompetition agreement effectively conveyed a dentist’s personal goodwill to his C corporation, such that it became the corporation’s asset for income tax purposes.
9th Circuit Upholds Defined Value Clause
9th Circuit upholds defined value, formula allocation clauses against IRS argument that they require a condition precedent—i.e., an IRS audit and/or determination of fair market value.