Kohler v. Comm'r; Action on Decision 2008-1; IRC Section 2032 proposed regulationsKohler v. Comm'r; Action on Decision 2008-1; IRC Section 2032 proposed regulations
Frederic Kohler died on March 4, 1998, owning 12.85 percent of the stock in Kohler Co., a closely held company. On May 11, 1998, before the alternate valuation date (AVD), which is six months after the date of death, the stock was exchanged for stock subject to certain transfer restrictions as part of a tax-free reorganization under Internal Revenue Code Section 368(a). The estate subsequently elected
January 1, 2009
David A. Handler
Frederic Kohler died on March 4, 1998, owning 12.85 percent of the stock in Kohler Co., a closely held company. On May 11, 1998, before the alternate valuation date (AVD), which is six months after the date of death, the stock was exchanged for stock subject to certain transfer restrictions as part of a tax-free reorganization under Internal Revenue Code Section 368(a). The estate subsequently elected to use the AVD to value the stock, reporting the stock value on the estate tax return based on its post-reorganization value — which was considerably less than its date of death, pre-reorganization value.
IRC Section 2032 allows the executor of an estate to choose to value the estate's property at a time after the date of dea...
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?
