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a combined fair market value of $870,000. He then applied the
same 15-percent minority and 25-percent marketability discounts
to arrive at a net asset fair market value for each 1-percent
interest in the RMA FLP of $5,546. In both of the aforementioned
letters, however, Mr. Kirchick noted that “no representation is
made that these discounts will hold up or that you will be
entitled to the full amount of the annual exclusions claimed for
the gifts made.”
In October 1995, Ms. Cawley transferred $160,000 to
decedent’s checking account to purchase an interest in the DAC
FLP. In exchange for $151,000 of the $160,000 paid, Ms. Cawley
received a 26.057-percent interest in the DAC FLP.16 Likewise,
in October 1995, Ms. Slater transferred $160,000 to decedent’s
checking account in exchange for a 27.783-percent interest in the
DAS FLP.17
On March 25, 1996, Ms. Cawley wrote a $30,000 check to the
DAC FLP and a $40,000 check to the DAS FLP. The checks were
written from a joint account held in both Ms. Cawley and Ms.
16The record does not disclose why $9,000 was also not
credited as consideration for the purchase of an interest in the
DAC FLP. However, it is clear that the parties used the
discounted value to calculate the percentage received in the
exchange: 26.057 percent interest x $5,795 = $151,000.31.
17Apparently, although she paid only $160,000, Ms. Slater
was credited with having paid $161,000. It is clear that the
parties used the discounted value to calculate the percentage
received in the exchange: 27.783 percent interest x $5,795 =
$161,002.48.
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