KEEPING 2036 OUT OF ITKEEPING 2036 OUT OF IT
Paul G. Marcotte, Jr., a partner in the Bethesda, Md. law firm of Paley, Rothman, Goldstein, Rosenberg, Eig & Cooper, Chtd., reports: On Nov. 7, the U.S. Tax Court rejected the government's latest attempt to use Internal Revenue Code Section 2036 to disregard family partnerships in Estate of Stone v. Commissioner, T.C. Memo 2003-309. The decision may provide some clues to practitioners about how to
January 1, 2004
Rorie M. Sherman Editor in Chief
Paul G. Marcotte, Jr., a partner in the Bethesda, Md. law firm of Paley, Rothman, Goldstein, Rosenberg, Eig & Cooper, Chtd., reports:
On Nov. 7, the U.S. Tax Court rejected the government's latest attempt to use Internal Revenue Code Section 2036 to disregard family partnerships in Estate of Stone v. Commissioner, T.C. Memo 2003-309. The decision may provide some clues to practitioners about how to structure these entities to avoid getting caught in the Service's anti-FLP dragnet: Use the Section 2036 exception for bona fide sales.
Stone involved five limited partnerships, all formed by an elderly couple (now deceased) and their children. The Tax Court never considered the government's argument that the asse...
Unlock All Access Premium Subscription
Get Trusts & Estates articles, digital editions, and an optional print subscription. Choose your subscription now and dive into expert insights today!
Already Subscribed?
