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.
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 ...
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 ...
Tax Court Crafts Its Own Cost-to-Partition Approach in Valuing Fractional Interests
Tax Court rejects approaches by both IRS and taxpayer expert for valuing undivided half-interests in vacation home, ultimately concluding combined discount of 17% under weighted, partition and nonpartition scenarios.
Having Lost the War on Family LLC, IRS Loses the Battle on the Discounts
Tax Court applies step transaction doctrine to formation and funding of family LLC, and then applies taxpayer’s discounts for lack of control and marketability, in absence of IRS evidence regarding the same.
Close Call: Taxpayer Appeals FMV Standard and Discounts in Valuing FLP Restrictions
8th Circuit upholds Tax Court’s decision regarding application of IRC Sec. 2703 to FLP transfer restrictions and their limitation of marketability discounts under the fair market value standard.
Pierre v. Commissioner (II)
Tax Court applies step transaction doctrine to formation and funding of family LLC, and then applies taxpayer’s discounts for lack of control and marketability, in absence of IRS evidence regarding the same.
Ludwick v. Commissioner
Tax Court rejects approaches by both IRS and taxpayer expert for valuing undivided half-interests in vacation home, ultimately concluding combined discount of 17% under weighted, partition and non-partition scenarios.
Holman v. Commissioner (II)
Eighth Circuit upholds Tax Court’s decision regarding application of IRC Sec. 2703 to FLP transfer restrictions and their limitation of marketability discounts under the fair market value standard.
Another Taxpayer Win: Court Accepts 47.5% Discount for Formed (But Not Funded) FLP
Court accepts combined discounts of 47.5% on transfers to an FLP, which was formed but not fully funded before the founder’s death.
New FLP Case: Taxpayer’s First Asset Transfer Merits Discount, But Not Second
Court finds initial transfer of funds to FLP qualifies for exclusion from the estate at discounted value, but second transfer does not, for lack of bona fide business purpose.
Keller v. United States (II)
Court accepts combined discounts of 47.5% on transfers to an FLP, which was formed but not fully funded before the founder’s death.
Terrible FLP Facts Preclude Analysis of Discounts
Tax Court finds not one factor supporting a legitimate, nontax business purpose for family limited partnerships funded with over $2 million in largely untraded marketable securities.
Estate of Miller v. Commissioner
Court finds initial transfer of funds to FLP qualifies for exclusion from the estate at discounted value, but second transfer does not, for lack of bona fide business purpose.
New Tax Court Decision on Discounts and Embedded Taxes Hinges on Experts
Tax Court considers determination of discounts for embedded capital gains taxes, lack of control, and lack of marketability for estate’s interests in two closely held companies, one owning primarily farm land and the other marketable securities.
Estate of Jorgensen v. Commissioner
Tax Court finds not one factor supporting a legitimate, nontax business purpose for family limited partnerships funded with over $2 million in largely untraded marketable securities.
Latest FLP Case Lists ‘Bad Facts’ to Avoid
Tax Court disallows FLPs based on numerous bad facts, including poor drafting, delayed funding, and exchange of founder’s interests for a private annuity from the minority owners.
Estate of Litchfield v. Commissioner
Tax Court considers determination of discounts for embedded capital gains taxes, lack of control, and lack of marketability for estate’s interests in two closely held companies, one owning primarily farm land and the other marketable securities.
Estate of Hurford v. Commissioner
Tax Court disallows FLPs based on numerous bad facts, including poor drafting, delayed funding, and exchange of founder’s interests for a private annuity from the minority owners.
IRS and Taxpayer Agree to 35% DLOM—If FLP Transfers Pass ‘Indirect Gift’ Tests
Tax Court accepts stipulated 35% DLOM after finding that FLP funding and transfer is not an indirect gift.
Bianca Gross v. Commissioner
Tax Court accepts stipulated 35% DLOM after finding that FLP funding and transfer is not an indirect gift.
Another Bad Facts FLP—and Why Appraisers Should Care
What appraisers should know about another "bad facts" FLP.