- 7 -
therefore should be disregarded for Federal gift tax purposes,
(2) that the partnership agreement should be treated as a
restriction on the right to sell or use property (i.e., the
property underlying the transferred partnership units) which must
be disregarded under section 2703(a)(2) in determining the
Federal gift tax value of such property, (3) that the provision
in the partnership agreement restricting a limited partner’s
ability to liquidate his interest by withdrawing from the
partnership should be treated as an applicable restriction under
section 2704(b) which must be disregarded in determining the
Federal gift tax value of the transferred partnership units, and
(4) that in determining the fair market value of the transferred
partnership units under the general valuation rule of section
2512, no discounts for lack of control and lack of marketability
are warranted. Respondent has since abandoned the first three of
those four alternative theories and has modified his position
with respect to the remaining theory to allow for a 4.4-percent
discount for lack of control and a 15-percent discount for lack
of marketability.
OPINION
I. Introduction
We must determine the fair market value, as of the date of
transfer, of 45.47-percent and 53.48-percent limited partner
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