-3- shall be determined by reference to an agreed formula that takes into account the value of the Kohler stock we determine. We are also asked to decide whether each petitioner is liable for the accuracy-related penalty. The parties have resolved all other issues. The estate reported on the estate tax return that the Kohler stock it owned was worth $47,009,625 on the alternate valuation date. Respondent determined that the Kohler stock the estate owned was worth $144.5 million on the alternate valuation date. We hold that the fair market value of the stock the estate owned is $47,009,625, as reported on the estate’s tax return.3 Because we have sustained the estate’s valuation of its Kohler stock, we accordingly also find that the estate is not liable for the accuracy-related penalty. We also find that the petitioners in the gift tax cases are not liable for the accuracy-related penalty. FINDINGS OF FACT Some of the facts have been stipulated and are so found. The stipulation of facts and the accompanying exhibits are incorporated by this reference. Herbert V. Kohler, Jr., Ruth 3The estate reported that its Kohler stock was worth $47,009,625 on the alternate valuation date and attached an appraisal to its return indicating the stock was worth $47,010,000. The parties stipulated that the appraisal report determined the stock was worth $47,009,625. The parties do not explain this $375 discrepancy.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