During a recent webinar on gift and estate tax valuations, the audience was asked a question regarding tax affecting income for pass-through entities. About half (48%) of the respondents said they “always tax affect,” and 6% said they “never tax affect.” But 42% said “it depends,” which was startling to Jim Hitchner (Financial Valuation Advisors), who hosted the webinar. “I am surprised at the number of participants who selected ‘it depends,’” he writes in the July 2023 issue of Hardball With Hitchner. “I for one, almost, if not always, make an adjustment to income based on the cash flow used to pay distributions for shareholder taxes. I do not understand why ‘it depends’ has such a high percentage.”

The July issue includes results from various polls done over the past year, which reveal current practices in the business valuation and forensic/litigation world. Hardball With Hitchner is a monthly publication. For subscription information, click here.