Gross v. Commissioner (II)

Full Text of Court Cases
November 19, 2001
2086 Bottled and Canned Soft Drinks and Carbonated Waters
312111 Soft Drink Manufacturing
estate and gift taxation
daubert, income approach, tax affecting, discount for lack of marketability (DLOM), fair market value (FMV), gift tax, s corporation

Gross v. Commissioner (II)
272 F.3d 333, 2001 U.S App. LEXIS 24803
Federal Court
6th Circuit
United States Court of Appeals
David O. McCoy, CBA (for the taxpayer); Charles A. Wilhoite, CPA/ABV, ASA (for the taxpayer); Mukesh Bajaj, Ph.D. (for the IRS)


Issues involved tax affecting of the discounted cash flows of the company and the size of the marketability discount.

See Also

A Gross Result in the Gross Case Calls Into Question Circumstances in Which Tax Affecting Is Valid

Appraisers may soon have to defend their tax affecting in prior S corporation valuations as a result of Gross.

Daubert Issue Rears Its Ugly Head in Gross Case

George Hawkins wrote a guest abstract of this case in the January 2002 issue of Shannon Pratt's Business Valuation Update focusing on the tax affecting issues in the case.

0% Reduction for Tax Affecting Affirmed

The 6th Circuit affirmed the Tax Court’s valuation of gifted minority interests in a closely held S corporation.