Nelson V. Commissioner is the most important development in defined value gifts and sales since the landmark Wandry case.

In this 22 page tax Tax Court memorandum opinion, issued on June 10, 2020, Judge Pugh ruled in favor of the IRS on an attempted defined value gift and a defined value sale, holding that the donors transferred percentage interests instead of specific dollar amounts, distinguishing Wandry. The court also determined the value of the percentage gift and the percentage sale, which resulted in a gift tax deficiency for both transactions. The case is appealable to the Fifth Circuit.

This 90 minute program will cover defined value transfers from soup to nuts. Paul and Bob will cover all of the important cases and rulings involving defined value transfers beginning with the Fourth Circuit’s Procter decision and going up to the present with the Wandry  and Nelson decisions. In particular, the class will cover:

• Nelson - O, those ten missing words!!!
• Understanding Nelson and its lessons
• IRS audits, appeals and Tax Court litigation
• Creating a “Hazard of Litigation”
• What experts are virtually certain won’t work.
• What Paul and Bob believe will work.
• What Paul and Bob believe might work.
• Drafting Wandry clause for sales and gifts
• Combining Wandry clauses with trust overflow provisions to LPA trusts, GRATs, charities and marital deduction trusts
• Importance of proper gift tax reporting of a defined value transfer
• Importance of proper income tax returns, protective claims and the Section 1311 to 1314 mitigation provisions
• Importance of proper financial statements shared with lenders and others
• Types of defined formula value approaches.
• Formula allocation clause based on a subsequent agreement of involved parties.
• Formula allocation clause based on final values as determined for gift tax purposes.
• Price adjustment clauses.
• Impact of Belk holding (4th Cir. 2014).
• Defined value clauses in the IRS Priority Guidance Plan.
• Exercising substitution powers using a defined value clause.
• Traps to avoid and much more.

There will be no CE for this webinar


For those who have a conflict with the date/time, The session will be recorded. Simply register and you will have unlimited access to the recording.

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