Tax bill for ex-Pistons owner's estate cut to $388M

The heirs and estate of billionaire Bill Davidson, former longtime owner of the Detroit Pistons, have won a significant financial victory over the IRS in U.S. Tax Court.

Instead of the $2.8 billion the Internal Revenue Service claimed it was owed in estate, gift and generation-skipping taxes, it will receive about $388 million.

The decision, which was filed in U.S. Tax Court on Monday, was two years in the making. That's when Davidson's estate took the IRS to court to dispute the amount owed.

According to documents filed with the court, the IRS payout includes $186.6 million in gift taxes, $152.5 million in estate taxes and $48.6 million in generation-skipping taxes.

The case was heard by Judge David Gustafson in Washington, D.C.

Kenneth Gideon, the attorney representing the estate, and Richard Hassebrock, the senior council for the IRS in Cincinnati, could not be reached for comment Wednesday afternoon.

Davidson, who was 86 when he died in 2009, parlayed ownership of Guardian Industries glass company into a sports empire that once included the Pistons, Shock, Tampa Bay Lightning NHL team and Detroit Fury arena football team. He also was a world-renowned philanthropist who gave heavily to Jewish and Israeli causes.

Davidson's 19-page will, signed one week before his death, broke his estate estimated at more than $1 billion into several trusts and names three beneficiaries: his wife, Karen Davidson; a son, Ethan Daniel Davidson; and daughter, Marla Jane Davidson Karimipour.

Davidson became majority owner of the Pistons in 1974. He was inducted into the Naismith Basketball Hall of Fame in 2008 for his career as an owner. The Pistons and Shock each won three championships during his tenure. Davidson also won the Stanley Cup in 2004 with the Lightning.

Davidson was the first owner to purchase an airplane for his team. He was the first to finance his own arena and he was the first to encourage then-NBA Commissioner David Stern to consider taking a more global approach to marketing the league.

Forbes reported in 2008 that Davidson's net worth was $4.5 billion, ranked first in the state.

Guardian Industries, headquartered in Auburn Hills, is one of the world's largest producers of float glass and fabricated glass products used in the automotive industry.

Karen Davidson sold the Detroit Pistons and Palace Sports & Entertainment Inc. to Tom Gores four years ago in a deal worth $325 million.

lrazzaq@detroitnews.com

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