Certified Public Accountants
News
Posted Oct 6 2011 12:00 AM by Jenina Cody
Estate of Gallagher v. Commissioner, T.C. Memo. 2011-148, 2001 WL 2559847 (U.S. Tax Court) (June 28, 2011)
In the case of the estate of Gallagher v. Commissioner, the decedent owned 15 percent in a private Subchapter S corporation that held various newspaper assets. When she died in July 1994, her estate valued her 15 percent share at $35 million based on an appraisal by its CEO, but the Internal Revenue Service (IRS) said it was worth closer to $50 million. At trial before the Tax Court, both sides enlisted new appraisers and closed the gap slightly: $28 million for the taxpayer versus $41 million for the IRS. In particular, they disputed four broad aspects of the valuation.
In the case of the estate of Gallagher v. Commissioner, the decedent owned 15 percent in a private Subchapter S corporation that held various newspaper assets. When she died in July 1994, her estate valued her 15 percent share at $35 million based on an appraisal by its CEO, but the Internal Revenue Service (IRS) said it was worth closer to $50 million. At trial before the Tax Court, both sides enlisted new appraisers and closed the gap slightly: $28 million for the taxpayer versus $41 million for the IRS. In particular, they disputed four broad aspects of the valuation.
To read this article and the full text of our Valuation Services Group Bulletin, click here.
Related posts:
An independently owned and operated member firm of Nexia International
Terms of Use Privacy Policy Contact
© 2012 KSM Business Services, Inc.
website content management powered by Marketpath CMS