The enormous tax dollars at stake in connection with valuation discounts for estate and gift tax purposes is evidenced by the never ending stream of family limited partnership cases.
The 2009-2010 New York State ("NYS") Budget Act, enacted on April 7, 2009, makes numerous changes to New York’s Tax Law -- increasing taxes, creating new fees, imposing stricter reporting obligations and increasing penalties.
While not a tax issue per se, the problem discussed here often arises as a result of transfers of real property that were made for income or estate tax planning purposes.
Many recent court decisions concerning family limited partnerships or limited liability companies (“LLCs”) have involved “bad facts making bad law.”
The wave of litigation over the efficacy of family limited partnerships has not abated.