Assets of Valid Partnership Included in Gross Estate
Tax Court ruled that 100% of the property within the partnership, despite the fact that the partnership was validly formed, was includable in the gross estate under Sec. 2036 (a).
4th Circuit Upholds No Minority Discount for 50% Interest in HUD Partnerships
At the time of his death, decedent owned a 50% interest in five general partnerships.
Lack of Present Economic Benefit Results in Finding of Future Interest
In the April 2002 issue of Shannon Pratt's Business Valuation Update, Owen Fiore and Erin Wilms discussed various attacks by the IRS on pass-through entities.
Stock Held Pursuant to GPA Aggregated With Stock Held Outright for Valuation Purposes
The full Tax Court reviewed this federal estate tax matter.
Gulig (Estate of Strangi) v. Commissioner (II)
The court of appeals found no obvious reason for the denial of the IRS's Section 2036 claim and remanded for consideration of the claim and revaluation if necessary.
Polack v. Commissioner (I)
The issue in this case was the valuation of taxpayer Polack's gift of 1,040,000 shares of Zip Sort, Inc. (ZSI) stock that he gifted to his children.
Trahan v. Trahan
The issue was whether to include the estimated value of construction contracts that had not been completed as of the valuation date in value of corporation.
Caracci v. Commissioner (I)
The issue was whether the value of the Sta-Home Health Agency, Inc. (SHHA) and related entities transferred into S corporations exceeded the consideration paid.
Estate of Harper v. Commissioner
Tax Court ruled that 100 percent of the property within the partnership, despite the fact that the partnership was validly formed, was includable in the gross estate under Sec. 2036 (a).
Continuing IRS attacks on reality of pass-through entities
This article pulls together court cases, Field Service Advice (FSAs) and Technical Advice Memoranda (TAMs) that show the courts' and the IRS's positions on the valuations of interests in pass-through ...
Estate of Godley v. Commissioner (II)
Estate argued that the question of whether decedents fifty percent interest represented a lack of control was a question of law. The Court of Appeals flatly disagreed.
Dr. Bajaj responds to Dr. Pratts February 2002 Editorial: Bajaj attacks restricted stock and pre-IPO discount studies; Pratt replies, defending studies, notes that debate may be semantic
In the last issue, Dr. Shannon Pratt critiqued my co-authored paper, Firm Value and Marketability Discounts, forthcoming in Journal of Corporation Law . 1, 2 I would like to take this op ...
Estate of Fontana v. Commissioner
The issue was whether two blocks of stock had to be aggregated for valuation purposes.
Hackl v. Commissioner (I)
The issue was whether the gifts were present interests or future interests under Section 2503(b) of the tax code.
Gifts of Future Interest Do Not Qualify for Sec. 2503(b) Exclusion
The full Tax Court considered whether gifted LLC units subject to a restrictive operating agreement were gifts of a present or future interest in the gifted property for the purposes of the annual gift tax exclusion.
Treas. Reg. § 1.701-2: Anti-abuse rule
WAIS Document Retrieval[Code of Federal Regulations] [Title 26, Volume 8] [Revised as of April 1, 2001] From the U.S. Government Printing Office via GPO Access [CITE: 26CFR1.701-2] [Page 309-319 ...
Different approaches to reasonable compensation
Fair Compensation, Intangibles and Value , James B. Lurie , Business Appraisal Practice , Fall 2001, pp. 4-12. The author discusses two Tax Court cases that illustrate differing approaches to reas ...
Lack of marketability discounts suffer more controversial attacks
The apparently well-meaning Drs. John Kania and Mukesh Bajaj are at it again, espousing discounts for lack of marketability for stocks of closely held companies that are a fraction of those encountered in the real world.
Full Tax Court addresses FLP issues in recent trilogy
Three recent U.S. Tax Court cases address important issues relating to the use of family limited partnerships for estate planning purposes, Shepherd v. Commissioner , decided Oct. 26, 2000, and K ...
IRS revises business valuation guidelines
In May 2001, the IRS submitted draft business valuation standards for comment to various appraisal organizations. The draft standards included parts of the Uniform Standards of Professional Appraisal ...
ASA and IRS as BV trendsetters
ASA's IRS Initiative: An Insider's Perspective , Jay E. Fishman and Peter Barash , Business Valuation Review, June 2001, pp. 25-29. In 1997, the American Society of Appraisers (ASA) per ...
Industry research at its best
www.integrainfo.com Integra 's industry reports provide business appraisers with some of the most up-to-date online information on industry trends. Integra combines proprietary data with U.S.
First ABA/ASA joint conference highlights importance of business valuation
The American Bar Association (ABA) and co-sponsor American Society of Appraisers (ASA) held their first ever joint business valuation conference in San Francisco, California, May 3-5, titled "Business ...
Three Strikes and You're Out!
ABA Newsletter, Section of Taxation , Summer 2000, Volume 19, Number 4 This article summarizes three recent cases, D'Ambrosio , Wheeler , and Magnin , which take exception to the Federal Cir ...
Ignoring non-compete and/or employment agreements often causes overvaluations
An important adjustment that many business appraisers, attorneys, and courts often overlook is the deduction of the value of a non-compete agreement and/or employment agreement in reaching a conclusio ...