The Karl DeLong Estate (with a taxable value of more than $16,500,000) includes the following assets: 200 shares of common stock in the DeLong family corporation (valued at $3,580,000) 1,000 shares of common stock in a large public utility that trades more than 100,000 shares per day (valued at $1,560,000) Certificates of deposit (valued at $520,000) Three commercial buildings located in an older part of town where values are decreasing rapidly (valued at $4,525,000) Which valuation technique could best be used to reduce the value of Karl's gross estate? A)The alternate valuation date for all assets B)A blockage discount on the public utility stock C)Special use valuation on the CDs D)A fractional interest (co-ownership) discount on the DeLong family stock
The Karl DeLong Estate (with a taxable value of more than $16,500,000) includes the following assets: 200 shares of common stock in the DeLong family corporation (valued at $3,580,000) 1,000 shares of common stock in a large public utility that trades more than 100,000 shares per day (valued at $1,560,000) Certificates of deposit (valued at $520,000) Three commercial buildings located in an older part of town where values are decreasing rapidly (valued at $4,525,000) Which valuation technique could best be used to reduce the value of Karl's gross estate? A)The alternate valuation date for all assets B)A blockage discount on the public utility stock C)Special use valuation on the CDs D)A fractional interest (co-ownership) discount on the DeLong family stock
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter18: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 18P
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The Karl DeLong Estate (with a taxable value of more than $16,500,000) includes the following assets:
- 200 shares of common stock in the DeLong family corporation (valued at $3,580,000)
- 1,000 shares of common stock in a large public utility that trades more than 100,000 shares per day (valued at $1,560,000)
- Certificates of deposit (valued at $520,000)
- Three commercial buildings located in an older part of town where values are decreasing rapidly (valued at $4,525,000)
Which valuation technique could best be used to reduce the value of Karl's gross estate?
A)The alternate valuation date for all assets
B)A blockage discount on the public utility stock
C)Special use valuation on the CDs
D)A fractional interest (co-ownership) discount on the DeLong family stock
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