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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.
Background
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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