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MEMORANDUM FINDINGS OF FACT AND OPINION
COLVIN, Judge: Respondent determined a deficiency in
petitioner's estate tax of $1,179,865.2
After concessions, we must decide the following issues:
1. Whether transfers totaling $1,724,198 from Beth W.
Corp. to or on behalf of decedent are loans. We hold that the
transfers are not loans and that petitioner may not deduct the
transfers as a claim against the estate.
2. whether the value of the stock of Beth W. Corp. should
be discounted because Beth W. Corp. will be liable for tax on a
capital gain when and if it is paid for real property it sold to
trusts established by decedent. We hold that the value of the
stock should not be discounted.
3. whether the appropriate discount for lack of
marketability for the stock of Beth W. Corp. is 40 percent, as
petitioner contends; zero, as respondent contends; or some other
amount. We apply a 15-percent discount for lack of
marketability.
Section references are to the Internal Revenue Code as in
effect on the date of death of Jewell E. Gray (decedent). Rule
references are to the Tax Court Rules of Practice and Procedure.
2Respondent concedes all of the issues in docket Nos. 18526-
93 (gift tax and generation skipping tax) and 18537-93
(generation skipping tax).
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