Holman v. Comm'r
United States Tax Court
Ps transferred D stock of substantial value to a newly formed family limited partnership and then made gifts of limited partnership units (LP units) to a custodian for one of their children and in trust for the benefit of all of their children. Ps made a large gift in 1999 and smaller gifts in 2000 and 2001. In valuing the gifts for Federal gift tax purposes, they applied substantial discounts for minority interest status and lack of marketability.
Read the full summary
Ps transferred D stock of substantial value to a newly formed family limited partnership and then made gifts of limited partnership units (LP units) to a custodian for one of their children and in trust for the benefit of all of their children. Ps made a large gift in 1999 and smaller gifts in 2000 and 2001. In valuing the gifts for Federal gift tax purposes, they applied substantial discounts for minority interest status and lack of marketability. With respect to the 1999 gift, R argues that the gift should be treated as an indirect gift of D shares and not as a direct gift of LP units. For…
1Opinion of the Court
Halpern, Judge:
By separate notices of deficiency (the notices), respondent determined deficiencies in each petitioner’s Federal gift tax of $205,473, $8,793, and $16,009 for 1999, 2000, and 2001, respectively. In response to the notices, petitioners jointly filed a single petition. Respondent answered, and, by amendment to answer, he increased by $2,304 and $13 the deficiencies he had determined for each petitioner for 1999 and 2001, respectively.
Unless otherwise indicated, all section references are to the Internal Revenue Code in effect for the years in issue, and all Rule references are to…
2Cases cited19 opinions
- Helvering v. National Grocery Co.Supreme Court of the United States · 1938
- Higgins v. CommissionerSupreme Court of the United States · 1941
- Estate of Newhouse v. CommissionerUnited States Tax Court · 1990
- Casey v. CommissionerUnited States Tax Court · 1962
- Estate of Reynolds v. CommissionerUnited States Tax Court · 1970
14 more not listed; retrieve them via the Exa API.
3Cited by26 opinions
- Whitehouse Hotel L.P. v. Comm'rUnited States Tax Court · 2008
- Pierre v. Comm'rUnited States Tax Court · 2009
- Holman v. CommissionerCourt of Appeals for the Eighth Circuit · 2010
- CNT Investors, LLC v. Comm'rUnited States Tax Court · 2015
- Whitehouse Hotel Ltd. P'ship v. Comm'rUnited States Tax Court · 2012
21 more not listed; retrieve them via the Exa API.