Taxpayer Victory on FLP Recognition
On Jan. 18, 2000, Judge Orlando Garcia of the United States District Court ruled in favor of the taxpayer in the first family limited partnership case to be tried in a federal district court.
Church v. United States (I)
At issue is whether a partnership transaction was entered into for no purpose other than to reduce the taxation of Mrs. Church's estate.
Family Limited Partnership Formed Two Days Before Death Not Sham Transaction
The primary issue in this estate tax refund action was whether Stumberg Ranch Partners Ltd. was formed for a bona fide business purpose, or was a sham transaction designed to avoid estate and gift taxes.
No Gift Tax Due When Partnership Was Formed Two Days Before Death
The U.S. District Court for the Western District of Texas rejected the IRS' position that gift tax was due on the formation of a family limited partnership formed two days before the decedent's death.