DCF Model Proves Unreliable Tool for Ascertaining Cost Basis

Business Valuation UpdateVol. 20 No. 5
Legal and Court Case Update
May 2014

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6035 Savings Institutions, Federally Chartered
522120 Savings Institutions
federal taxation
income approach, discounted cash flow (DCF), excess earnings, fair market value (FMV), market analysis
Washington Mutual, Inc. v. United States
2014 U.S. Dist. LEXIS 17553
February 10, 2014
US
Federal Court
Washington
United States District Court
Roger Grabowski (plaintiff/taxpayer); Steven Mann (defendant/government)
Rothstein

Summary

Court finds numerous problematic assumptions make plaintiff expert’s DCF model unreliable indicator of FMV of thrift’s branching right; without this value, plaintiff is unable to establish the right’s cost basis and support its tax refund claim.

See Also

Washington Mutual, Inc. v. United States

Full Text of Court Cases
February 10, 2014

Court finds numerous problematic assumptions make plaintiff expert’s DCF model unreliable indicator of FMV of thrift’s branching right; without this value, plaintiff is unable to establish the right’s cost basis and support its tax refund claim.