Bankruptcy Court Accepts Rationale for Tax Affecting

Business Valuation UpdateVol. 21 No. 3
Legal and Court Case Update
March 2015

Access the Full Article

This article is available with a subscription to any of these products:
Already a subscriber?  Login
This article is also available for purchase. (2,236 words)   Add to Cart >>
Need help? Contact us:
1-503-479-8200 ext 2 or sales@bvresources.com
7331 Direct Mail Advertising Services
511140 Directory and Mailing List Publishers
bankruptcy
expert testimony, income approach, size premium, tax affecting, capitalization rate, comparable companies analysis, discount for lack of marketability (DLOM), market approach, trustee, fraudulent transfer, s corporation, equity risk premium (ERP), company specific risk, stock valuation, creditor, compensation, income capitalization, industry risk adjustment, normalized net cash flow
Bank of America, N.A. v. Veluchamy (In re Veluchamy)
2014 Bankr. LEXIS 5106 ()
December 18, 2014
US
Federal Court
Illinois
United States Bankruptcy Court
G. William Kennedy (estate); Daniel Van Vleet (defendants)
Wedoff

Summary

In a fraudulent transfer case involving S corp, court says valuation should reflect that buyers of S corps would experience a reduction in the value of the corporations' earnings because of the need to pay personal income taxes on those earnings.

See Also

Bank of America, N.A. v. Veluchamy (In re Veluchamy)

Full Text of Court Cases
December 18, 2014

In a fraudulent transfer case involving S corp, court says valuation should reflect that buyers of S corps would experience a reduction in the value of the corporations' earnings because of the need to pay personal income taxes on those earnings.