Abstract
This article addresses IRS challenges related to gifts of interests in FBEs. The IRS may challenge the valuation of the FLP and FLLC interests based on the use of minority and lack of marketability discounts. The IRS may also attack the annual exclusion claimed for gifts of interests in FBEs. Recent tax cases (Hackl, Price andothers) provide guidance which may help donors address IRS challenges andqualify for the annual exclusion. This article concludes with a discussion of suggestions to help shield FBE gifts from attacks by the IRS. With careful planning donors can reach tax planning goals as well as various non-tax goals related to the gifts of interest in FBEs.
Recommended Citation
Nix, Wayne and Morgan, Mark PhD
(2013)
"Gifts of Interests in Family Limited Partnerships And Family Limited Liability Companies: Qualifying for the Annual Exclusion,"
Journal of Business, Industry, and Economics: Vol. 18, Article 8.
Available at:
https://roar.una.edu/jobie/vol18/iss1/8