Family Partnership Valuation Discounts Approved By Tax Court
I find this decision particularly apt for opening 2016 although it would have been better for closing 2015, which it would have had I been a little more diligent. My second blog post ever over six years ago was a discussion of family limited partnerships, that hammered home the point that that good execution is critical with them starting with the post’s title – Devil Is In The Details.
How Much Is That Picasso In The Window? Tax Court Says Quite A Bit
The Picasso ended up selling for $12,297.874 (hammer price of $11,484,000 plus $1,443,874 paid by the buyer to Christies). Here is a video of the auction – In the Saleroom: Pablo Picasso’s Tete de femme (Jacqueline). It strikes me as pretty subdued and the numbers are a little less dramatic being in pounds and all. I found the bidding for Volume III of The Dial at Elizabeth’s Auctions more exciting, but of course it was my own seven hundred bucks that was in play there.
In case you can’t do compound interest in your head, that is appreciation of over 15% since 1981.
Follow Me
Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.