Wealth & Risk Management Blog

William Byrnes (Texas A&M) tax & compliance articles

Posts Tagged ‘valuation’

A Date Can Make the Difference in Valuation Cases

Posted by William Byrnes on April 29, 2011


Today we re-examine the case in-depth, focusing on how the IRS utilizes the step transaction doctrine to deny taxpayers valuation discounts.  The case is yet another example of how important the dating of transactions is when you’re looking to secure a valuation discount.  A single date on a document can mean the difference between a substantial valuation discount on a gift and the expense of fighting the IRS through the court system.  Read this complete analysis of the impact at AdvisorFX (sign up for a free trial subscription with full access to all of the planning libraries and client presentations if you are not already a subscriber).

For previous coverage of valuation discounts in Advisor’s Journal, see IRS Rebuffed by Federal Court of Appeals in Valuation Discount Case (CC 11-21)Vigorous Debate over Qualified Appraisal Standard for Valuation of Donated Policies (CC 10-92) & Valuation Discounts: Only for a Bona Fide Business (CC 10-60).

For in-depth analysis of gift tax valuation discounts, see Advisor’s Main Library: A—Family Limited Partnerships and Estate & Gift Tax Valuation Discounting.

Posted in Estate Tax, Taxation | Tagged: , , , , , , , | Leave a Comment »

Valuation Discounts: Only for a Bona Fide Business

Posted by William Byrnes on October 4, 2010


Valuation discounts are increasingly challenged by the IRS. Gone are the days when assets could be dropped into a family limited partnership with some transfer restrictions and forgotten about until a valuation discount was needed to reduce a gift or estate tax bill.  A recent U.S. District Court case, Fisher v. U.S., reminds us that times have changed.  Often, placing assets in a business entity is no longer enough to justify a valuation discount—the entity must be run like a business to justify the discount.   Read the analysis by our experts Robert Bloink and William Byrnes located at AdvisorFX Journal Valuation Discounts: Only for a Bona Fide Business

For some good news about valuation discounts, see our article in AdvisorFX Advisor’s Journal on the Jensen case.

From a tax perspective see Tax Facts Q 613. How is a closely held business interest valued for federal estate tax purposes?

After reading the analysis, we invite your questions and comments by posting them below, or by calling the Panel of Experts.

Posted in Estate Tax | Tagged: , , , , , , , | Leave a Comment »

Capital Gains Increasing Importance for Valuation Discounts: Jensen v. Commissioner

Posted by William Byrnes on August 25, 2010


A recent Tax Court case makes up for some of the ground lost by FLPs in recent cases reining in more aggressive valuation discounts. In Jensen v. Commissioner (T.C. Memo 2010-182), an estate holding an interest in a closely-held corporation that owned fairly significant real estate won its case against the IRS.

Today’s analysis by our Experts Robert Bloink and William Byrnes is located at AdvisorFX Journal Capital Gains Increasing Importance for Valuation Discounts: Jensen v. Commissioner

For a detailed analysis of Valuation For Gift Tax Purposes, see AdvisorFX Main Library Section 7. Gift Taxes D—Valuation For Gift Tax Purposes.

After reading the analysis, we invite your questions and comments about indexed annuities by posting them below, or by calling the Panel of Experts.

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