Opportunities From Unusual PlacesOpportunities From Unusual Places

The past year in estate and gift tax valuation exhibited a shift away from litigating the magnitude of percentage discounts for nonmarketable, minority interests. In 2014, cases that reached the Tax Court looked quite different from those of the pre-American Taxpayer Relief Act years. One must diligently search to locate a court decision addressing the size of the appropriate discount for lack of control or marketability for a lifetime gift of an interest in a family limited partnership or similar entity. Last year, courts instead delved into such issues as personal goodwill and corporate assets.  

Personal Goodwill Reemerges

“Goodwill” is viewed as an incremental value or benefit beyond the assets employed in an enterprise. Although good...