Business Valuation Update
- How to Review a Report’s Valuation Methodology
- Ideas for Solving Two Problems in the BV Profession
- How Do Your Firm’s Benefits Stack Up?
- Using Rule of Thumb Data to Uncover Cooked Books
Unusual Corporate Structure and Valuation Discounts Considered
The Colorado Court of Appeals considered various aspects of the valuation in this dissenting shareholder action.
Extraordinary circumstances in case of first impression
This trial court matter arose from the plaintiff shareholder's action to dissolve defendant corporation. The corporation elected to purchase the plaintiff's stock, and a hearing to determine ...
Post-Valuation-Date Sale Used to Support Discounted Cash Flow Method
The Tax Court valued a medical textiles manufacturing company using the discounted cash flow method.
Buy-Sell Agreements Are Testamentary Devices
This 336-page estate and gift case deals with a $75,935,883 tax deficiency and $30,328,153 in associated penalties asserted by the IRS.
Holding Company’s Valued Using Net Asset Value
The U.S. Tax Court valued four holding companies and one operating company.
Estate of Ford v. Commissioner
The United States Tax Court examined the valuation of five, family-owned, closely held companies.
Marketability Discount Based on IPO and Restricted Stock Studies Rejected
The Tax Court considered the valuation of two 25% interests in a corporation that owned and operated motels.
Valuation includes salary inflation and preseparation debt; management control doesn't affect discounts
The issues raised in this marital dissolution appeal concerned the valuation of the husband's 49.6% minority interest in Capitol Fire Protection Co. and the award of child support.
No Discounts Applicable to IRAs
The full Tax Court concluded that a discount was not applicable to individual retirement accounts (IRAs) to account for the built-in gains that would be taxable to estate or beneficiaries upon their distribution.
5th Circuit Considered the Valuation of Lottery Payments
The U.S. Court of Appeals considered whether deviation from the annuity tables in Sec. 7520 was warranted in the valuation of a lottery prize.
No Built-In Gains Discount in FLP Valuation
This tax case concerned limited partnership interests gifted to family member partners.
Thorough Update of Reports Essential
The Tax Court valued an undivided 50% interest in a closely held telecommunications company as of the 1991 valuation date. The court rejected the IRS' argument that a 1994 redemption of all non-Scanlan family stock was indicative of the 1991 fair market.
Oregon Court of Appeals Finds No Minority Discount Applies in Buyout of Oppressed Shareholder
Three shareholders formed VPI, a custom manufacturing corporation.
Illiquidity Increases With Block Size
The Tax Court determined the fair market value, including a discount for lack of marketability, of a large block of stock in a retail books, music, and video chain operating in the South and Southwest.
Court Accepts Taxpayer's 76% Discount on Farm Corporation
The estate in this case held minority interests in two companies: Jones Farm Inc. (JFI) (33% ownership of common stock) and in the First National Bank of Waverly (FNBW) (12% of common stock).
Tax Court Values Partnership Interest in Future Lottery payments
This estate tax case concerns 19 annual installment payments of lottery winnings to a limited partnership in which the decedent held a 2% general partnership interest and a 48% limited partnership interest.
Tax Court Values Bonus Compensation Stock, Applies Two-Tier Discounts
The valuation issue in this case pertained to the fair market value of two minority blocks of stock of Williamsburg Vacations Inc. (WVI) issued as bonus compensation to a shareholder/officer/director of a C corporation investment holding company in early 1989 and 1990.
Small-Block Sales Not Indicative of FMV; 30% Marketability Discount Applied
The issue in this estate tax matter was the fair market value on Sept. 7, 1993, of decedent's 366,385 shares of common stock of Hastings Books, Music & Video Inc., a closely held corporation.
Valuation Discounts Allowed in Reverse Merger
The Illinois Court of Appeals, 1st District, affirmed the lower court's decision to apply valuation discounts in this dissenting shareholder action.
Pension Plan Liability Key to Mine Valuation
The Kentucky Court of Appeals affirmed the valuation of an interest in a mining company. The issue turned on the correct amount of the company’s Multi-Employer Pension Plan Amendment Act of 1980 potential liability. The court utilized 15 percent of gross ...
Adjustments Required to Value Holding Company Stock
The primary issue in this ESOP litigation is the fair market value of the Hall Holding Co. stock the Hall Holding ESOP purchased.
Court Rejects 60% Discount for Lack of Marketability
The Kentucky Court of Appeals affirmed the valuation of a 50 percent interest in a radiology practice.
Standard Valuation Discounts Denied Where Limited Partnership Transaction Is Consolidated for Tax Purposes
The U.S. Court of Appeals for the 8th Circuit determined that a transfer of public stock to a family limited partnership (FLP) made close in time to a gift of FLP interests was an indirect gift of the pro rata share of the public stock for gift tax purposes.
Aggregation of Partnership Interests Included in the Decedent’s Gross Estate Under Section 2044 and Section 2038 Improper
The Tax Court considered whether partnership units in which the decedent held the right to receive income for life should be aggregated with partnership units decedent placed in trust for estate tax purposes.
Aggregation Denied
The Tax Court considered a motion for summary judgment regarding whether undivided interests the estate owned and included in the gross estate under IRC sec. 2036 should be aggregated with interests included in the same estate under IRC sec. 2044.