Estate and Gift Tax Valuation: Discounts of Partnership Interests

Authors

Kurt A. Hohenstein, University of Nebraska College of Law

Abstract

I. Introduction

II. The Service Position on Partnership Valuation … A. The Asset Valuation Rule … 1. Estate Tax and the Asset Valuation Rule … 2. Gift Tax and the Asset Valuation Rule

III. Judicial Inroads into the Service’s Asset Valuation Rule … A. Estate of Bischoff v. Commissioner … B. Estate of Goldie Brown v. Commissioner … C. The Close Corporation Analogy

IV. Discount Characteristics of Partnerships and the Close Corporation Analogy … A. Minority Interest Discounts … 1. Close Corporations … a. Rights under Local Law … 2. General Partnership Interests … 3. Limited Partnership Interests … B. Lack of Marketability Discounts … 1. Close Corporations … a. The Hypothetical Sale: Section 20.2031-1(b) and Revenue Ruling 59-60 … 2. Partnership Interests and the Marketability Discount … a. Lack of Marketability … C. Restrictions on Transferability … D. Loss of Key Man Discounts

VI. Conclusion

Recommended Citation

Kurt A. Hohenstein, Estate and Gift Tax Valuation: Discounts of Partnership Interests, 59 Neb. L. Rev. (1980)
Available at: https://digitalcommons.unl.edu/nlr/vol59/iss3/7