Irene Eisenberg - Page 2

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               Respondent determined deficiencies in petitioner's Federal             
          gift taxes for the taxable years 1991, 1992, and 1993 in the                
          amounts of $20,157.99, $38,257.15, and $3,319.55, respectively.             
          The deficiencies are attributable to respondent's disallowance of           
          petitioner's valuations of closely held corporate stock.                    
               Respondent and petitioner have both alleged in their                   
          respective motions that there are no genuine issues as to                   
          material facts and that a decision may be rendered as a matter of           
          law.  We agree with their allegations.  Consequently, the case              
          herein is ripe for summary judgment.                                        
               The sole issue for decision is whether, in determining the             
          Federal gift tax value of her stock in a corporation, on the                
          basis of the net asset value method of valuation, petitioner may            
          take into account the full amount of the capital gain taxes                 
          attributable to the built-in gain on the corporation's sole asset           
          at certain stock transfer dates.                                            
               At the time of the filing of the petition in this case,                
          Irene Eisenberg, petitioner, resided in New York, New York.  On             
          January 25, 1980, Avenue N Realty Corp. (the corporation) was               
          organized under the laws of the State of New York.  From its                
          inception, petitioner held all issued and outstanding common                
          stock of the corporation, which comprised 1,000 shares.  The                
          corporation made an election, effective on January 1, 1987, to be           

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