Wimmer Wins FLP Annual Exclusions

Abstract

In Wimmer, the Tax Court held that the income stream from a taxpayer’s gifts of family limited partnership interests was eligible for the annual exclusion. By comparing the income interest in the partnership’s dividend paying marketable securities to the income interest in a trust, the court made Wimmer a winner. But does the opinion logically lead to that conclusion?

Keywords: gift tax, family limited partnership, FLP, annual exclusion, trust, Wimmer

JEL Classification: H2, H20, H24, K34