Nelson v. Commissioner
In gift tax case, Tax Court finds donor transferred percentages in limited liability company rather than fixed dollar amounts based on language in transfer instruments; further, where transferred minority interests include elements of control, minority discount should be reduced, not eliminated.
Court Says Reduced Minority Discount Appropriate Where Minority Interest Has Elements of Control
In gift tax case, Tax Court finds donor transferred percentages in limited liability company rather than fixed dollar amounts based on language in transfer instruments; further, where transferred minority interests include elements of control, minority discount should be reduced, not eliminated.
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.
BVU News and Trends April 2020
A monthly roundup of key developments of interest to business valuation experts.
BVU News and Trends March 2020
A monthly roundup of key developments of interest to business valuation experts.
Tax Court spurns IRS’ gift tax valuation theory and methodology
In a gift tax dispute, the U.S. Tax Court recently found for the taxpayer when it rejected the unusual reasoning and methodology the Internal Revenue Service’s trial expert proposed to keep low the discounts applicable to the nonvoting membership units in two limited liability companies (LLCs).
IRS ruling on subsequent events and valuation
In a private letter ruling, the IRS says that a pending merger is to be considered in valuing a company’s stock for gift tax purposes.
Grieve v. Commissioner
In gift tax dispute, Tax Court rejects IRS expert’s valuation of noncontrolling, nonmarketable interests in two LLCs; expert proposed valuation theory and method were intended to lower opposing experts’ minority and marketability discounts but lacked support in facts, case law, or among peers.
Tax Court Rejects IRS’ Value Analysis, Finding It Assumes Additional Actions Not ‘Reasonably Probable’
In gift tax dispute, Tax Court rejects IRS expert’s valuation of noncontrolling, nonmarketable interests in two LLCs; expert proposed valuation theory and method were intended to lower opposing experts’ minority and marketability discounts but lacked support in facts, case law, or among peers.
Advisers urge family biz owners to sell now
Amid a booming economy and political uncertainty, wealth advisers are encouraging family-owned businesses to sell before the “party ends,” according to an article in Bloomberg.
Office of Chief Counsel Internal Revenue Service Memorandum
IRS private letter ruling says that, under facts, gift tax valuation must consider merger that was being negotiated at the time the donor transferred company stock into a trust where the merger was only announced after the stock transfer and the announcement prompted an increase in stock value.
IRS Private Letter Ruling on Whether to Consider Pending Merger in Gift Tax Valuation
IRS private letter ruling says that, under facts, gift tax valuation must consider merger that was being negotiated at the time the donor transferred company stock into a trust where the merger was only announced after the stock transfer and the announcement prompted an increase in stock value.
Willamette gives insights into estate and gift valuations
The Summer 2019 Insights from Willamette Management Associates focuses on valuations for estate and gift tax purposes and is edited by Weston C. Kirk.
BVU News and Trends May 2019
A monthly roundup of key developments of interest to business valuation experts.
D.C. Circuit Upholds Remainder-Interest Valuation in Weird Charitable Contribution Case
In charitable contribution case involving remainder interest, D.C. Circuit upholds Tax Court’s value-related findings, including that petitioner did not provide qualified appraisal and did not meet substantiation requirements; valuation here is to be based on FMV, not actuarial tables.
Blau v. Commissioner (RERI II)
In charitable contribution case involving remainder interest, D.C. Circuit upholds Tax Court’s value-related findings, including that petitioner did not provide qualified appraisal and did not meet substantiation requirements; valuation here is to be based on FMV, not actuarial tables.
Kress gift tax case signifies approval of tax affecting—at least in federal district court
One aspect that has valuators excited about the Kress v. United States gift tax case is that the federal court that ruled on the taxpayers’ challenge to the IRS’s gift tax assessment accepted valuations from both parties’ experts that applied a C corporation tax rate to value minority shares in an S corporation.
Kress v. United States signifies approval of S corp tax affecting
In a gift tax case teeming with valuation issues, one notable aspect was that, in valuing the minority shares of an S corporation, both parties’ experts applied a C corporation tax rate to the company’s earnings and the court, without ado, accepted the practice.
Gift Tax Case Suggests Overall Acceptance of S Corp Tax Affecting
In gift tax case requiring valuation of minority shares in S corporation, district court accepts application, by all experts, of C corp-level tax rate to company’s earnings; court, with minor DLOM adjustment, credits valuations by taxpayers’ expert, noting his market approach is “the most sound.”
Kress v. United States
In gift tax case requiring valuation of minority shares in S corporation, district court accepts application, by all experts, of C corp-level tax rate to company’s earnings; court, with minor DLOM adjustment, credits valuations by taxpayers’ expert, noting his market approach is “the most sound.”
How IRS turmoil from the shutdown affects BV
The IRS is doing its best to recover from the government shutdown, but business valuation experts need to be aware of certain issues, according to Michael Gregory (Michael Gregory Consulting LLC), who gave an IRS update during a recent BVR webinar.
BVU News and Trends November 2018
A monthly roundup of key developments of interest to business valuation experts.
IRS BV community is ‘fractured’
The IRS business valuation community is “very fractured,” leading to inconsistencies on audits, says former IRS manager Michael Gregory (Michael Gregory Consulting LLC).
Sit in on a real-world IRS audit
A former IRS manager will conduct a mock audit of an estate valuation matter during a special four-hour workshop on September 25.
What’s it like to be on the IRS audit hot seat?
Find out during a special four-hour workshop that pits a former IRS manager against a business valuer in a mock estate tax audit.