Tax Law Update 2008-11-01 (1)Tax Law Update 2008-11-01 (1)
The Tax Court finds taxpayer did not indirectly gift partnership assets. Score another win for taxpayers and against the Internal Revenue Service seeking to use Internal Revenue Code Section 2511 to declare invalid a discount for a family limited partnership (FLP). In Bianca Gross v. Commissioner, T.C. Memo. 2008-221, No. 9693-06 (Sept. 29, 2008), the IRS had claimed that taxpayer Bianca Gross' gifts
David A. Handler, partner & Alison E. Lothes, associate, in the Chicago office of Kirkland & Elli
The Tax Court finds taxpayer did not indirectly gift partnership assets. Score another win for taxpayers and against the Internal Revenue Service seeking to use Internal Revenue Code Section 2511 to declare invalid a discount for a family limited partnership (FLP).
In Bianca Gross v. Commissioner, T.C. Memo. 2008-221, No. 9693-06 (Sept. 29, 2008), the IRS had claimed that taxpayer Bianca Gross' gifts to her daughters of limited partnership (LP) interests in a newly formed FLP were indirect gifts of the partnership assets. But Judge James S. Halpern — the same judge responsible for the May 27, 2008, Tax Court decision in Holman v. Comm'r, 130 T...
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