Tax Aspects of Holding and Transferring Interests in Closely Held Businesses

Author

Marilyn Louise Spieldoch, Fontbonne College

Year of Award

1992

Degree

Master of Science in Taxation (MST)

College

College of Business & Professional Studies

Degree Program

Taxation

Department

Business Administration

Keywords

estate, market, commisioner, valuation

Abstract

The impact of estate and gift taxes is a major consideration in the formation and restructuring of closely held businesses.

Estate freezing proliferated as a method of shifting appreciation in assets from older family members in high tax brackets to younger family members with lower taxable incomes on a tax-free or tax-advantaged basis. The antifreeze provisions contained in Internal Revenue Code Section 2036(c) were designed to prevent many of the alleged abuses of prior estate freezing practices. However, the Section 2036(c) restrictions were complex and difficult to administer. Subsequently, Section 2036(c) was repealed and replaced by the special valuation rules of Chapter 14 of the Internal Revenue Code, enacted by the Revenue Reconciliation Act of 1990.

This thesis will present a detailed analysis of the aforementioned special valuation rules and then will take a cross-sectional approach to scrutinize the vehicles used to retain or transfer wealth among members of closely held businesses. Outside exchanges and charitable contributions will also be considered.

The empirical research performed for this paper draws heavily on conclusions and analogies found in established court cases.

Document Type

Restricted Thesis

Recommended Citation

Spieldoch, Marilyn Louise, "Tax Aspects of Holding and Transferring Interests in Closely Held Businesses" (1992). All Theses, Dissertations, and Capstone Projects. 359.
https://griffinshare.fontbonne.edu/all-etds/359