Family limited partnerships: meet section 2703
Article Abstract:
The IRS issued a technical advice memorandum (TAM) on Jan 1, 1997, limiting the valuation discounts applied to family limited partnerships that are part of an estate. The TAM ruling said a family limited partnership formed by a decedent shortly before death would be disregarded for tax purposes, but did not specify how long before death the line should be drawn. This expansive reading of Section 2703 relies on several controversial propositions that will need to be clarified by Congress or tested in court.
Publication Name: Estate Planning
Subject: Law
ISSN: 0094-1794
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
Gifts of family limited partnership interests did not qualify for annual exclusion, rules IRS
Article Abstract:
The IRS disregarded precedent in Technical Advise Memorandum (TAM) 9751003 when it denied annual exclusion qualification for 35 gifts of family limited partnership interests which it considered not to be gifts of present interests. The IRS relied upon partnership agreement provisions regarding partnership rights. Such reliance is contrary to US Supreme Court 1972 precedent in Byrum and IRS TAM 9415007.
Publication Name: Estate Planning
Subject: Law
ISSN: 0094-1794
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
Hard times for buy-sell agreements
Article Abstract:
The Tax Court has tightened the judicial tests used in valuation reviews for buy-sell agreements under IRC 2703. Buy-sell agreements present greater risks as do most other wealth-transfer tax valuation issues, especially since the Bommer Trust case in 1995. Planners should pay particular attention to the Bommer court's language regarding testamentary devices.
Publication Name: Estate Planning
Subject: Law
ISSN: 0094-1794
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Conflictive partnership: a strategy for real world labor-management cooperation. Manitoba's experience with final offer selection: a comment
- Abstracts: Patent law - a patient seeks a portion of the biotechnological patent profits. Patent infringement and the role of judge and jury in light of Markman and Hilton Davis
- Abstracts: Public deliberation, affirmative action, and the Supreme Court. Who measures the chancellor's foot? The inherent remedial authority of the federal courts
- Abstracts: Proposed grantor trust regulations may surprise U.S. taxpayers with foreign employees' trusts. The withholding obligations of U.S. and foreign employers on compensation paid to foreign national employees in the United States
- Abstracts: Anti-avoidance principles - new directions for tax and business resulting from the High Court decision in Spotless