ch 19 M

roblem 19-40 (a) (LO. 9)

At the time of his death, Bart had an adjusted gross estate of $12,000,000. Included in the estate were the following business interests.

		Fair Market Value
	A 40% capital interest in the Zap Partnership	$2,600,000
	A 15% interest in Buffalo Corporation	1,975,000
	A plumbing service operated as a sole proprietorship	1,000,000

The Zap Partnership has 20 partners, while Buffalo Corporation has a total of 50 shareholders. None of the other partners or shareholders are related to Bart.

Complete the following statements to answer the question "Can Bart's estate qualify for an election under 6166?"

The capital interest in the Zap Partnership does qualify as interest in a closely held business and the interest in Buffalo Corporation does not qualify as interest in a closely held business. Because Bart's interest in closely held businesses is % of the his adjusted gross estate, an election under 6166 is not available.

Question is asking for the %