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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) A fractional interest (co-ownership) discount on the DeLong family stock
B) A blockage discount on the public utility stock
C) Special use valuation on the CDs
D) The alternate valuation date for all assets

Respuesta :

anthougo

The best valuation technique to reduce the value of Karl's gross estate is C) Special use valuation on the CDs.

What is special use valuation?

Special use valuation is a valuation method that determines property value on the basis of its “current use” rather than its “highest and best use.”

Special use valuation is permitted by the Internal Revenue Code (IRC) Section 2032A.

However, the special use valuation method is for real estate and not CDs.

Thus, the best valuation technique to reduce the value of Karl's gross estate is C) Special use valuation on the CDs.

Learn more about the special use valuation method at https://brainly.com/question/3925584

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