Estate of Frank M. DiSanto, Deceased, Roxanne DiSanto Tinnell, Byrnadette DiSanto, and Frank DiSanto, Coexecutors - Page 2




                                        - 2 -                                         
                       MEMORANDUM FINDINGS OF FACT AND OPINION                        

               COLVIN, Judge:  Respondent determined deficiencies in estate           
          tax of $4,362,142 for the Estate of Frank M. DiSanto (Mr.                   
          DiSanto), and $3,791,104 for the Estate of Grace J. DiSanto (Mrs.           
          DiSanto).                                                                   
               Mr. DiSanto owned a controlling block of 186,177 shares                
          (53.5 percent) of the stock in Morganton Dyeing & Finishing Corp.           
          (MD&F) when he died on November 26, 1992.  Under his will, Mr.              
          DiSanto left the residue of his estate to a trust for the benefit           
          of Mrs. DiSanto and their children.  In May 1993, Mrs. DiSanto              
          disclaimed part of her interest in Mr. DiSanto's estate which               
          resulted in her being entitled to receive only a minority block             
          of MD&F stock.  She died on June 4, 1993, before administration             
          of Mr. DiSanto's estate was completed.                                      
               After concessions, the issues for decision are:                        
               1.   Whether the fair market value of a block of 186,177               
          shares of MD&F stock on November 26, 1992, was $5,585,310 ($30              
          per share) as respondent contends; $2,263,912 ($12.16 per share)            
          as petitioners contend; or some other amount.  We hold that it              
          was $4,375,160 ($23.50 per share).                                          
               2.   Whether the fair market value of the MD&F stock Mrs.              
          DiSanto was entitled to inherit from Mr. DiSanto’s estate on June           
          4, 1993, was $1,705,522 ($14 per share) as respondent contends;             







Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011