Estate of Elkins v. Comm'r
United States Tax Court
D owned undivided fractional interests in 64 works of contemporary art. 1. Held: In valuing certain of those fractional interests, pursuant to I.R.C. sec. 2703(a)(2) we disregard D's agreement by which he waived his right to institute a partition action with respect to some of the works of art and thereby relinquished an important use of his fractional interests in those works. 2. Held, further, the total fair market value of D's interests in the art determined.
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D owned undivided fractional interests in 64 works of contemporary art. 1. Held: In valuing certain of those fractional interests, pursuant to I.R.C. sec. 2703(a)(2) we disregard D's agreement by which he waived his right to institute a partition action with respect to some of the works of art and thereby relinquished an important use of his fractional interests in those works. 2. Held, further, the total fair market value of D's interests in the art determined. SeeI.R.C. sec. 2031.
1Opinion of the Court
Halpern, Judge:
By notice of deficiency issued to petitioners (notice), respondent determined an estate tax deficiency of $9,068,265. Petitioners (Ms. Sasser and Ms. Joseph) are the coexecutors of the Estate of James A. Elkins, Jr. (estate), and are decedent’s daughters. Their brother, James A. Elkins III (James III), who was also a coexecutor of the estate, died on June 10, 2010, less than a month after respondent issued the notice, and will not be replaced as a coexecutor. The issue to be decided is the total fair market value of decedent’s undivided fractional interests in 64 works of art,…
2Cases cited27 opinions
- Helvering v. National Grocery Co.Supreme Court of the United States · 1938
- United States v. CartwrightSupreme Court of the United States · 1973
- Buffalo Tool & Die Mfg. Co. v. CommissionerUnited States Tax Court · 1980
- Seymour Silverman v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1976
- Parker v. CommissionerUnited States Tax Court · 1986
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3Cited by4 opinions
- Estate of James A. Elkins, Jr. v. CIRCourt of Appeals for the Fifth Circuit · 2014
- Estate of Elkins v. Comm'rUnited States Tax Court · 2013
- Estate of James A. Elkins, Jr., Margaret Elise Joseph and Leslie Keith Sasser, Independent Executors v. CommissionerUnited States Tax Court · 2013
- McElroy v. Comm'rUnited States Tax Court · 2014