Bill Would Have Far Reaching Effect on Gift and Estate Tax Valuation

Abstract

Representative Earl Pomeroy (D. North Dakota) has introduced a bill, HR 436, that would have significant impact on the value of interests in real estate, investment holding and possibly operating entities, for estate and gift tax purposes. This echoes proposals made during the Clinton Administration. Certain aspects of the proposed bill seem to be difficult to discern and further refinements and debate are surely going to come if it moves forward in committee. But, if enacted, it or similar bills, will likely will change the valuation of these kinds of “property,” in many cases.

Keywords: estate tax, gift tax, valuation, real estate

JEL Classification: K34