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Bogdanski: Pierre and Gifts of Interests in Single-Member LLCs

John A. Bogdanski (Lewis & Clark) has published Much Ado About (a Tax) Nothing: Pierre v. Commissioner, 36 Est. Plan. 38 (Dec. 2009):

A divided Tax Court has held that gifts of interests in a single-member LLC are eligible for entity-related valuation discounts, such as minority and lack-of-marketability discounts, under the gift tax. The decision, Pierre [v. Commissioner, 133 T.C. 13 (2009) (court-reviewed, 10-6 decision)], rejected the IRS's contention that such gifts should be treated as gifts of interests in the LLC's underlying asets, ineligible for discounts, unless the entity had previously made a "check-the-box" election to be treated as a corporation for federal tax purposes.


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