Tax Court Rejects GPCM, Dissects DCF in Valuing Minority LP Interest

Business Valuation UpdateVol. 17 No. 9
Legal and Court Case Update
September 2011

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0811 Timber Tracts
113110 Timber Tract Operations
federal taxation
discount rate, discount for lack of marketability (DLOM), discounted cash flow (DCF), net asset value approach (NAV)
Estate of Giustina v. Commissioner (I)
2011 Tax Ct. Memo LEXIS 141, T.C. Memo. 2011-141, 2011 WL 2516168 (U.S. Tax Court)
June 22, 2011
US
Federal Court
United States Tax Court
Robert Reilly (taxpayer); John Thomson (IRS)
Morrison

Summary

Tax Court calculates value of a 41% family limited partnership (timberland assets) using a net asset value and DCF approach, the latter including a 25% DLOM and 16% discount rate, adjusted for unique risks.

See Also

Estate of Giustina v. Commissioner (I)

Full Text of Court Cases
June 22, 2011

Tax Court calculates value of a 41% family limited partnership (timberland assets) using a net asset value and DCF approach, the latter including a 25% DLOM and 16% discount rate, adjusted for unique risks.