Tax Court Chooses Market Approach Over Asset Approach
The issue in this consolidated case involving the Caracci family was whether the value of the Sta-Home Health Agency Inc. (SHHA) and related entities transferred into S corporations exceeded the consideration paid.
Okerlund v. United States (I)
The issue in this consolidated case was the fair market value of two minority nonvoting stock interests in Schwan's Sales Enterprises, Inc.
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).
29% Lack of Control, 6% Lack of Marketability Discount for a 49% Interest
This case is on a remand from the 9th Circuit Court of Appeals.
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.
Kerr v. Commissioner (II)
Issue was whether restrictions in partnership agreements were "applicable restrictions" to be disregarded in valuing the transferred interests, precluding a marketability discount.
Net Gift Doctrine Not Applicable If Obligation Too Speculative
Decedent held a controlling interest in National Fruit Products Inc., a privately held 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).
11th Circuit Affirms Shepherd v. Commissioner
This gift tax case is an appeal from the Tax Court's December 2000 decision, which was abstracted in the December 2000 issue of Shannon Pratt's Business Valuation Update®, at page 5.
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.
Estate of Mitchell v. Commissioner (III)
The Tax Court, reaching the same final valuation conclusion, again applied a 35% discount on remand.
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.
Field Service Advice 200143004
Field Service Advice 200143004. The issues were: (1) Whether donor’s family corporation (FC) lacks economic substance and should be disregarded for gift tax purposes; (2) Whether donor made a gift of ...
Shepherd v. Commissioner (II)
Issues were characterization of ifts as indirect gifts and proper application of stipulated combined minority and marketability discount.
A Gross Result in the Gross Case Calls Into Question Circumstances in Which Tax Affecting Is Valid
Appraisers may soon have to defend their tax affecting in prior S corporation valuations as a result of Gross.
Daubert Issue Rears Its Ugly Head in Gross Case
George Hawkins wrote a guest abstract of this case in the January 2002 issue of Shannon Pratt's Business Valuation Update focusing on the tax affecting issues in the case.
Estate of Armstrong v. United States
The estate argued the "net gift doctrine," contending that the children's obligation to pay additional gift taxes as a condition of the gifts had substantially reduced the value of ...
2002-2010 tax law changes
The New Estate, Gift and Generation Skipping Law, Curtis R. Kimball, Insights , Autumn 2001, Willamette Management Associates, www.willamette.com . This article discusses the gift and es ...