Court Accepts Small Size Risk Premium, Adjustment to Multiples

Business Valuation UpdateVol. 6 No. 7
Legal and Court Case Update
July 2000
5191 Farm Supplies
424910 Farm Supplies Merchant Wholesalers
estate and gift taxation

Estate of Klauss v. Commissioner
T.C. Memo 2000-191, 2000 Tax Ct. Memo LEXIS 228
June 27, 2000
Federal Court
United States Tax Court
Bruce Johnson (for estate)<br>David N. Fuller (for IRS)


This case is important because it supports the use of the small stock premium in developing a discount rate and also the adjustment of market valuation multiples in the guideline public company method.

See Also

Estate of Klauss v. Commissioner

Business Valuation and Taxes: Procedure, Law and Perspective ...