Some thoughts on gifts of publicly traded appreciated corporate stock to private foundations
Article Abstract:
Stockholders wishing to receive deductions at fair market value for contributions of appreciated publicly traded stock to private foundations must meet the qualified appreciated stock requirements of IRC section 170(e). In general, when appreciated stock is donated to private foundations, the donor can only deduct the basis amount. Stock qualifies if it is capital gain property and if market quotations are readily available. SEC Rule 144 filing on the sale should only occur when the market price approaches the limit price set on subsequent sale of the stock.
Publication Name: Securities Regulation Law Journal
Subject: Law
ISSN: 0097-9554
Year: 1995
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Some comments on sales of "restricted securities" back to the issuer
Article Abstract:
SEC Rule 144 sales of restricted or control securities, limited to sales once every three months, can be made more often if the securities' owner or an affiliate sells the shares back to the original issuer. The SEC Rule 10b-18 safe harbor may be applicable if the issuer purchases the shares through a dealer-broker. The stockholder may not have to aggregate the prior sale with the pending Rule 144 sale, and may not have to report the previous sale to the issuer in Table II of Form 144, although the SEC may dispute this view of the seller's obligations.
Publication Name: Securities Regulation Law Journal
Subject: Law
ISSN: 0097-9554
Year: 1995
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Some comments on the discount valuation of publicly traded stock for federal estate, gift, and income tax purposes
Article Abstract:
The courts and IRS apply federal securities laws as the basis in determining discounts for valuation of publicly traded stocks for income, gift, and estate tax purposes. If the decedent's estate is an affiliate or control person of the issuer corporation, sales of shares must meet Rule 144 requirements, which can affect allowable discounts. In some cases, a private placement analogy has been used to determine the discount amount.
Publication Name: Securities Regulation Law Journal
Subject: Law
ISSN: 0097-9554
Year: 1996
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