Perfect Storm: COVID-19 and 2020 Election—Unexpected Windfall for E&G Tax Planning
Insights into the impacts on the estate and gift tax area and the opportunities it presents for business valuers.
Tax Court’s Novel Theory Aims to Prevent ‘Double Inclusion’
Tax Court finds assets transferred into family limited partnership on behalf of incapacitated decedent shortly before death are includible in gross estate under IRC section 2036(a)(2); to avoid “double inclusion,” court states new rule limiting includible ...
Activist Tax Court takes on double inclusion problem in estate and gift tax case
In an estate and gift tax case, the U.S. Tax Court recently sided with the Internal Revenue Service when the court found the value of assets transferred from the decedent to a family limited partnership was includible in the value of the decedent’s gross estate. The real surprise lay in the court's decision to propose a new way of calculating the includible amount.
Tax Court’s Novel Theory Aims to Prevent ‘Double Inclusion’
Tax Court finds assets transferred into family limited partnership on behalf of incapacitated decedent shortly before death are includible in gross estate under IRC section 2036(a)(2); to avoid “double inclusion,” court states new rule limiting includible ...
Estate of Powell v. Commissioner
Tax Court finds assets transferred into family limited partnership on behalf of incapacitated decedent shortly before death are includible in gross estate under IRC section 2036(a)(2); to avoid “double inclusion,” court states new rule limiting includible ...
Valuation challenges posed by digital assets
Social media, audiobooks, music and video files, bitcoin, and other digital assets pose estate planning and valuation challenges, explains a new paper. A handy checklist is also provided.
IRS addresses some concerns of valuators at Sec. 2704 regs hearing
IRS and Treasury officials on the hearing panel felt compelled to make a few remarks in response to the strong concerns of valuation experts, attorneys, wealth planners, and family business owners who testified.
IRS inundated with comments on proposed IRC 2704 regs
Over the past week, over 100 new comments have been submitted to the IRS about the controversial proposed Section 2704 regs designed to rein in estate tax valuations. That brings the total comments to almost 200, but it's hoped that many more will come in before the due date of November 2.
Appraisers see spike in engagements due to proposed Section 2704 regs
At the ASA Advanced Business Valuation Conference last week in Boca Raton, Fla., valuation practitioners told us that they are seeing an increase in valuation engagements triggered by the proposed Section 2704 regulations. They expect the increased business to gain steam as the regs continue to sink in with attorneys, wealth planners, and clients.
Challenge to new Section 2704 regulations is shaping up
The accounting, valuation, and legal professions are hard at work to defeat the Treasury Department's proposed Section 274 regulations. The new regs would curtail, if not entirely eliminate, valuation discounts in family-controlled entities.
Tax Court revaluation means big-time savings for taxpayer
In an estate tax dispute that has lasted for over five years, the Tax Court recently revalued the decedent’s minority interest in an Oregon family business by order of the 9th Circuit Court of Appeals. The recalculation proved a boon to the taxpayer.
Dreaded IRS estate valuation discount regs released
The Treasury has released long-awaited proposed IRC Section 2704 regulations designed to curb estate valuation discounts. It appears that the proposed regulations eliminate almost all minority discounts for closely held entity interests, including operating businesses owned by a family. The proposed regs have triggered a strong response from the valuation community, legal profession, and others.
What's in store for BV in 2015?
What were the most significant BV developments in 2014? What can we expect for 2015? BVWire posed these questions to the editorial advisory board of BVR’s Business Valuation Update. Here are a few comments.
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.
Business Valuation Cases in Brief
Business Valuation Cases in Brief by John J. Stockdale, Jr., JD Estate Valuations In the Estate of Farnam v. CIR, 130 T.C. No. 2 (February 4, 2008), the U.S. Tax Court concluded that loans made to a family business may not be aggregated with equity interests in that business in order to satisfy the 50% ‘‘interest’’ requirement needed to qualify for the family-owned business tax exemption. The court con- cluded that interest as used in ...
Business Valuation Cases in Brief
A review of cases that present issues of interest within the business valuation community.
40% 'Aggregate' Discount: Marketability, Control, and Unrealized Capital Gains
The IRS determined that decedent's estate owed amounts for estate tax and gift tax deficiencies.
What's new online at BVLibrary.com
BVLibrary is a website designed with the business valuation professional in mind. It offers instant access to the latest business valuation research ...
Estate of Dailey v. Commissioner (I)
At issue are the valuation of certain retained and gift interests in a Family Limited Partnership (FLP).
Technical Advice Memorandum 9725002
PRIVATE RULING 9725002 INTERNAL REVENUE SERVICE NATIONAL OFFICE TECHNICAL ADVICE MEMORANDUM "This document may not be used or cited as precedent. Section 6110(j)(3) of the Internal Revenue Code."