When a call option is issued in connection with performance of services, and the stock is not transferable and does not have a readily ascertainable
FMV, a second class of stock does not exist.
As a result, the Tax Court held that the transfer to the third-party beneficiaries was not severable and ascertainable
from the interest of the nondonor spouse, and, therefore, none of the trust transfer qualified for split-gift treatment.
The Tax Court addressed whether the portion of the stock transfer attributable to third parties was ascertainable
so that such transfer would be eligible for gift-splitting.
2041(b)(1)(A) which states that the power to consume or invade the trust for the decedent's own benefit (as beneficiary) was "limited by an ascertainable
standard relating to the health, education, support, or maintenance of the decedent.
If the package design asset developed (or modified) with the package design cost has an ascertainable
useful life extending beyond the end of the tax year in which the costs are incurred, the taxpayer may amortize the costs ratably over that useful life, beginning with the month the design is placed in service.
Package design costs generally do not have an ascertainable
If the warrant is compensatory and does not have a readily ascertainable
fair market value, it is not taxable on grant or issue.
New regulations allow the IRS to collect taxes, at the highest rate, from an individual in illegal possession of $10,000 in cash or its equivalent (such as unreported gambling winnings, stolen income or income from other illegal activities) who does not admit to being the owner of the cash or does not allege that it belongs to another person whose identity is readily ascertainable
and who acknowledges ownership.
This applies to (1) loans for which the borrower is personally liable for repayment, (2) nonrecourse loans secured by assets with a readily ascertainable
FMV and (3) nonrecourse loans secured by assets without a readily ascertainable
Factors that are considered in this determination include the degree of control represented by the amount of stock to be valued and the value of stock of companies engaged in the same (or similar) lines of business that do have a readily ascertainable
value (those that are listed on a stock exchange).