Everything the courts have ever said about marketability discounts

BVWireIssue #47-5
August 30, 2006

The McCord case highlights why it’s so critical to remain current on all court decisions regarding discounts for lack of marketability (DLOM). Given the legal basis for McCord’s overthrow, the Tax Court will still continue to question the validity of published stock data; and the IRS continues its aggressive campaign against marketability discounts. Experts agree that to successfully defend a DLOM calculation these days, you’ve got to know your DLOM law.

That’s where this latest resource becomes indispensable: BVR’s Guide to DLOM Case Law, 2006 Edition contains abstracts of nearly 200 court cases, including such landmark decisions as Mandelbaum v. Commissioner (1995)—in which the Tax Court listed nine discrete factors for determining DLOM—and subsequent cases where the courts (and attorneys and analysts) attempted to apply the factors to specific companies. For a free copy of the Mandelbaum abstract, click here.

“Because lack of marketability discounts are determined on a case-by-case basis,” says Shannon Pratt, “I recommend this current, one-stop resource whenever you have to calculate a DLOM.” For your copy, plus a searchable CD and annual updates, click here.

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