In Memoriam

Articles

Lecture

Notes

No Estate Tax Fractional Interest or Lack of Marketability Discount Allowed for Jointly Owned Property Held by Married Couple: Estate of Young v. Commissioner

In Estate of Young v. Commissioner, the Tax Court held that property owned by a husband and wife as joint tenants was not subject to discounts for fractional interest and lack of marketability in the valuation of the decedent's gross estate. The court rejected the estate's position that its situation was analogous to Propstra v. United States...

Taxpayer Who Diverted Income from Corporation with No Earnings and Profits Not Guilty of Criminal Tax Evasion: United States v. D'Agostino

In United States v. D'Agostino, the Second Circuit held that taxpayers who diverted income from a corporation with no earnings and profits could not be convicted of criminal tax evasion under section 7201. The court concluded that income diverted from a closely-held corporation to a shareholder must be taxed according to the provisions of the Code governing distributions by corporations. ...

Certain Business Expansion and Startup Expenses Are Not Deductible As Ordinary and Necessary Expenses: FMR Corp. v. Commissioner

In FMR Corp. v. Commissioner, the Tax Court held that certain costs related to the development of new mutual funds within an existing family of funds were not deductible as ordinary and necessary business expenses under section 162. The court also ruled that the taxpayer could not rely on the legislative intent underlying deductibility of startup costs under section 195...

Allocation of Costs of Common Improvement to Basis of Benefited Properties Disallowed Under Section 1016(a)(1): Norwest v. Commissioner

In Norwest v. Commissioner, the Tax Court held that petitioner's cost of constructing an atrium which connects three office buildings could not be allocated to the bases of these buildings under section 1016(a)(1). The court's decision was based on its findings that petitioner had no immediate plans to sell any of the buildings at the time construction...

Partial Discount for Built-In Capital Gains Available As Part of a Larger Discount for Lack of Marketability: Estate of Davis v. Commissioner

In Estate of Davis v. Commissioner, the Tax Court allowed a taxpayer to discount the value of closely held stock for gift tax purposes for built-in capital gains, part of a larger valuation discount for lack of marketability. Relying mostly upon the testimony of the experts from both parties, the court held that a willing buyer and a willing seller would take into consideration...