0% Reduction for Tax Affecting Affirmed

Business Valuation Update BVLaw
Legal and Court Case Update
November 19, 2001
2086 Bottled and Canned Soft Drinks and Carbonated Waters
312111 Soft Drink Manufacturing
estate and gift taxation
daubert, income approach, tax affecting, discount for lack of marketability (DLOM), fair market value (FMV), gift tax, s corporation

Gross v. Commissioner (II)
272 F.3d 333, 2001 U.S App. LEXIS 24803
Federal Court
6th Circuit
United States Court of Appeals
David O. McCoy, CBA (for the taxpayer); Charles A. Wilhoite, CPA/ABV, ASA (for the taxpayer); Mukesh Bajaj, Ph.D. (for the IRS)


The 6th Circuit affirmed the Tax Court’s valuation of gifted minority interests in a closely held S corporation.

See Also

Gross v. Commissioner (II)

Issues involved tax affecting of the discounted cash flows of the company and the size of the marketability discount.