Court Accepts Small Size Risk Premium, Adjustment to Multiples

Business Valuation UpdateVol. 6 No. 7
Legal and Court Case Update
July 2000

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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
US
Federal Court
United States Tax Court
Bruce Johnson (for estate)<br>David N. Fuller (for IRS)
Colvin

Summary

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

Full Text of Court Cases
June 27, 2000

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