Private Letter Rulings
PLR
200040037 Private Foundation Extension Of Excess Business Holdings Rules:
Donor X contributed shares of the family corporation Y to private foundation W. Subsequently, the assets of W were transferred to private foundation Z. Since the stock held by donor X and family members under the attribution rules exceeded 20% of total shares, the excess business holdings rules under Sec. 4943 apply. Shares held by a private foundation must under Sec. 4943(c)(6) be disposed of within a five-year period.
PLR
200323045 PF Granted Extra Five Years to Dispose of Excess Business Holdings:
In 1996 and 1997, Major Mark Stockholder contributed stock to My PF, which is classified as a private foundation. N, the contributed company stock, is a publicly traded company listed on the NASDAQ exchange. Major Mark actually owns the majority of the total outstanding stocks in N. In addition, Major Mark is a major contributor to My PF. As a result, Major Mark is a disqualified person with respect to My PF.
PLR
200332020 Foundation Is Given More Time to Dispose of Excess Business Holdings:
X, a private foundation, owns a significant amount of stock in Company. Company consisted of three different fitness clubs and adjacent real estate holdings. However, X has sold two of the clubs and has attempted to sell the third club. Although X has made diligent and continuous efforts to dispose of the third club, X has been unsuccessful.
PLR
200517031 Private Foundations May Create Real Estate:
Donor has created a private foundation M. Since Donor is a very successful real estate developer, he would like his private foundation to create an LLC to purchase land and then lease land to a second LLC to develop the property. His intent is for his private foundation M to use cash to purchase the land and then to lease it on a fixed payment lease to the Development LLC.
PLR
200526021 PF Permitted Five Year Extension to Dispose of Excess Business Holdings:
Bob Martin was the founder of Nimco, a complex and diversified real estate company. Nimco was the sole owner of Pimco. In his will, Bob bequeathed almost all of his estate to a marital trust. Clara, his wife, had a power of appointment over the marital trust. Bob and Clara also executed reciprocal will agreements under which both Bob and Clara agreed not to revoke or modify any term or provisions of their wills. Further they agreed that each of them would exercise their power of appointment in favor of the Martin Private Foundation.
PLR
200637041 Private Foundation's Real Estate Holdings Permitted:
A was formed as a private foundation as described in Sec. 509(a). A will hold a real estate portfolio consisting of commercial and residential rental properties.
PLR
200650018 Private Foundation Granted Extension to Dispose of Excess Business Holdings:
A is a private foundation as described in Sec. 509(a). A was created by B, who passed away leaving A his interest in a farm and 33% of the stock of C, which owns an irrigation ditch that runs through the Farm and adjacent land. The farm, irrigation ditch and land comprise a large and diverse business enterprise consisting of several thousand acres of farmland.
PLR
200747001 CLAT is a Completed Gift with No Excess Business Holdings:
Spouses H and W propose to create a charitable lead annuity trust (CLAT) to pay to a qualified public charity a fixed percent annually for the lesser of five years or the death of the second spouse.
PLR
201105053 Added Time to Sell Excess Business Holdings:
ORG is tax-exempt under Sec. 501(c)(3) and classified as a private foundation under Sec. 501(a). Upon the death of T, ORG received an unusually large bequest that resulted in ORG's ownership of 90% of M's class A common stock.
PLR
201220037 Supporting ORG Allowed Additional Time to Dispose of Excess Business Holdings:
Organization ("SO") was formed as a charitable trust, recognized as tax-exempt under Sec. 501(c)3 and classified as a supporting organization under Sec. 509(a)(3) prior to the enactment of the Pension Protection Act of 2006 (the "Act").
PLR
201229011 Extension Granted to Dispose of Excess Business Holdings:
The sponsoring organization of several donor advised funds (DAFs), requested an extension of time to dispose of the excess business holdings in a family controlled corporation.
PLR
201303021 Private Foundation's Non-Voting Stock in Corporation Not Excess Business Holdings:
Foundation is a private foundation that is tax-exempt under Secs. 501(a) and 501(c)(3) of the Code. Founder, Wife and business entities they own have donated substantial sums of money to Foundation. As such, Founder, Wife and Corporation are substantial contributors to Foundation.
PLR
201333020 Foundation's Hedge Fund Interest Won't Result in Excise Tax:
Donor proposes to contribute all of her Class B membership interest in LLC to Foundation, a private foundation under Sec. 509. LLC's sole activity is the operation of an investment hedge fund.
PLR
201414031 Charitable Contributions Will Make Retained Shares Permitted Holdings:
Foundation is a tax-exempt organization under Sec. 501(c)(3) classified as a private foundation under Sec. 509(a). Foundation’s founders transferred 5.5% of Company’s shares to Foundation.
PLR
201422027 Foundation’s Operation of Apartments Not Excess Business Holdings:
ORG is a private operating foundation under 509(a)(1) of the Code. ORG was created pursuant to an irrevocable trust executed by Grantor to award and fund college scholarships.