FOBI

(redirected from Family-Owned Business Interest)
AcronymDefinition
FOBIFriends of Belle Isle (Detroit, MI)
FOBIFlight Officer Biographical Inventory (Aviation Selection Test Battery)
FOBIFamily-Owned Business Interest (taxes)
FOBIFourth-Order Blind Identification
FOBIFear of Being Included
References in periodicals archive ?
(5) the qualified family-owned business interest deduction; and
(1)To the extent allowable by the law (governing the administration of decedents' estates) under which the estate is being administered, (a) funeral expenses, (b) administration expenses, (c) claims against the estate, and (d) unpaid mortgages on or other indebtedness against property included at its full value in the gross estate; (2) casualty and theft losses incurred during settlement of the estate and not compensated for by insurance or otherwise; (3) bequests to charitable organizations (and state taxes paid on charitable bequests) (Q 864); (4) the marital deduction (Q 863); (5) the qualified family-owned business interest deduction (Q 865); and (6) state death taxes.
The Tax Court recently held that a note does not constitute a qualified family-owned business interest (QFOBI) for purposes of IRC [section] 2057, which allows an estate to deduct up to $675,000 from its value for estate tax purposes.
The qualified family-owned business interest deduction (QFOBI), initially set at $675,000 in TRA of 1997, could not exceed $1.3 million when combined with the applicable exclusion.
Consider election to take deduction (repealed in 2004) for family-owned business interest under IRC Section 2057 [Chapter 42].
Congress instituted a new estate tax exclusion, beginning in 1998, for a qualified family-owned business interest (QFOBI) that, when added to the amount exempted by the unified credit, does not exceed $1.3 million.
The value of a qualifying family-owned business interest is reduced to the extent the trade or business owns cash or marketable securities in excess of working capital needs, or passive assets.[7] The legislative history indicates that working capital needs should be determined based on historical needs of the business, using the "Bardahl Formula" described in a 1965 Tax Court memorandum case.[8] Passive assets are defined to include assets that produce dividends, interest, rents, royalties, and other forms of passive income; interests in trusts and partnerships; and assets that produce no income.
Recapture Year Percentage 1-6 100 7 80 8 60 9 40 10 20 For this purpose, an IRC Section 303 redemption is not treated as a disposition of the family-owned business interest. (8)
Section 3: Qualified Family-Owned Business Interest Deduction (Chapter 42) (not available 2004 to 2010)
2033A qualified family-owned business interest (QFOBI) exclusion included in the IRS Restructuring and Reform Act of 1998 (IRSRRA '98) and the permanent extension of Sec.
A qualified family-owned business interest is defined as either: (a) a proprietorship, or (b) an interest in an entity carrying on a trade or business.
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