Irene Eisenberg - Page 8

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          942 (1982); Estate of Piper v. Commissioner, 72 T.C. 1062, 1087             
          (1979); Estate of Robinson v. Commissioner, 69 T.C. 222, 226                
          (1977); Estate of Cruikshank v. Commissioner, 9 T.C. 162, 165               
          (1947).6  Moreover, we have also held that a discount to asset              
          values for the "lost use of money" is inappropriate because it              
          fails to recognize that the underlying assets will themselves               
          appreciate, most likely, at a rate similar to that applied as a             
          discount.  Estate of Andrews v. Commissioner, supra at 950.                 
               The seminal case, Estate of Cruikshank v. Commissioner,                
          supra, held that potential capital gain taxes were not includable           
          in the computation for a discount in the valuation of certain               
          corporate shares.  In that case, the taxpayer held stock in a               
          closely held corporation which was an investment holding company.           
          The parties agreed that the corporation should be appraised on              
          the basis of the value of its underlying assets.  The issue                 
          presented was whether the value of the underlying assets should             
          be reduced by amounts of commissions and stamp and capital gain             
          taxes which would become payable if the assets were sold.  We               

               6See also Estate of Gray v. Commissioner, T.C. Memo. 1997-             
          67; Estate of Luton v. Commissioner, T.C. Memo. 1994-539; Estate            
          of Ford v. Commissioner, T.C. Memo. 1993-580, affd. 53 F.3d 924             
          (8th Cir. 1995); Estate of McTighe v. Commissioner, T.C. Memo.              
          1977-410; Estate of Thalheimer v. Commissioner, T.C. Memo. 1974-            
          203, affd. on this issue and remanded without published opinion             
          532 F.2d 751 (4th Cir. 1976); Gallun v. Commissioner, T.C. Memo.            

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