Complex Common Stock Valuations v. Commonsense—Guess Which Wins?
Court considers multiple expert analyses versus “commonsense” to come up with value of parent company common stock uncoupled from management authority.
Absent Appearance by Appraiser, Valuation Report Is Hearsay
In an income tax case where the IRS challenges the calculation of net unrealized built-in gain that has been based on a contemporaneous valuation of the assets subject to built-in gain tax, the valuation report by itself constitutes inadmissible hearsay where the preparing appraiser is not available for cross-examination.
Tribune Co. v. Commissioner of Internal Revenue
Court considers multiple expert analyses versus “commonsense” to come up with value of parent company common stock uncoupled from management authority ...
Xilinx, Inc. v. Commissioner
Tax Court holds that IRS inclusion of stock-based compensation in the cost pool was "arbitrary and capricious," because parties can make an arms-length arrangement not to share the spread or grant date value.
Van Der AA Investments, Inc. v. Commissioner
In an income tax case where the IRS challenges the calculation of net unrealized built-in gain that has been based on a contemporaneous valuation of the assets subject to built-in gain tax, the valuation report by itself constitutes inadmissible hearsay w ...
Miller & Sons, Inc. v. CIR
The U.S. Tax Court determined that compensation paid to owner-shareholders was reasonable and deductible under I.R.C. sec. 162. In reaching this conclusion the Court rejected a comparison of the contested compensation to data from industry surveys complie ...
ERI, RMA, and NIBM Data Rejected in Reasonable Compensation Determination
The U.S. Tax Court determined that compensation paid to owner-shareholders was reasonable and deductible under I.R.C. sec. 162.
Valuation of a Motion Picture Library Considered
The Tax Court valued a film library consisting of B grade films in connection with an economic substance analysis of a partnership transaction that resulted in substantial capital losses to the taxpayer.
Santa Monica Pictures, LLC v. CIR
The Tax Court valued a film library consisting of B grade films in connection with an economic substance analysis of a partnership transaction that resulted in substantial capital losses to the taxpayer.
Estate of Donovan v. U.S.
Federal district court (Mass.) finds that IRS annuity tables do not place “unreasonable or unrealistic” value on non-assignable lottery payments for purposes of assessing estate tax.
Tax Court’s Calculation of Reasonable Compensation Using RMA Data Affirmed
The U.S. Court of Appeals for the 5th Circuit affirmed the Tax Court’s determination of reasonable and deductible compensation for an owner of a Louisiana mobile home dealership.
Brewer Quality Homes, Inc. v. Commissioner (II)
The U.S. Court of Appeals for the Fifth Circuit affirmed the Tax Court’s determination of reasonable and deductible compensation for an owner of a Louisiana mobile home dealership. The compensation was calculated using RMA data for compensation to gross s ...
Reasonable Compensation Deduction Considered
The U.S. Tax Court determined that payments made to a controlling shareholder in 1999 and 2000, which were deducted on the company’s tax returns under sec. 162, were reasonable and deductible for the 2000 tax year but not for the 1999 tax year.
Beiner, Inc. v. CIR
The U.S. Tax Court considered determined that payments made to a controlling shareholder in 1999 and 2000, which were deducted on the company’s tax returns under sec. 162, were reasonable and deductible for the 2000 tax year but not for the 1999 tax year.
Black-Scholes Option Pricing Model Used to Determine Reasonable Compensation
The U.S. Tax Court determined that the amount Menard Inc. paid to its controlling shareholder as compensation and deducted on its 1998 federal tax return under sec. 162 was unreasonable.
Menard v. Commissioner (I)
The U.S. Tax Court determined that the amount paid by Menard, Inc. to its controlling shareholder as compensation and deducted on its 1998 Federal tax return under sec. 162 was unreasonable. In reaching this conclusion, it valued the long-term incentive c ...
Independent Investor Test Is One Factor Among Many in the 9th Circuit When Considering Reasonable Compensation
The U.S. Court of Appeals underscored that the independent investor test is but one of several factors to be considered when determining reasonable and deductible compensation under sec. 162 and is not dispositive of the issue.
Metro Leasing and Development Corporation v. CIR (II)
The U.S. Court of Appeals underscored that the independent investor test is but one of several factors to be considered when determining reasonable and deductible compensation under sec. 162 and is not dispositive of the issue.
Valuation of Acquiree’s Customer Accounts Using Acquirer’s Data Upheld
Charles Schwab amortized the customer accounts that it had acquired through a merger. The Commissioner challenged the amortization and this suit followed.
Proper Valuation Evidence Critical for Intangible Asset Loss Deduction
The valuation issue in this case was whether the specific and independent fair market value of 376 terminated health insurance group contracts had been sufficiently established to claim a loss deduction and evade the mass asset rule.
Capital Blue Cross v. Commissioner
At issue was the value of intangible assets for loss deductions.
The Charles Schwab Corporation v. Commissioner
Petitoner demonstrates it could determine the useful life of customer accounts it acquired after purchasing "Rose & Co." and therefore amortize them.
Grossly Inflated Sale Price, Nonrecourse Financing, and Negative Cash Flows Add Up to a Tax Shelter Not Engaged in for Profit
The issue was whether taxpayer was entitled to an $18,956 deduction related to his limited partnership interest for 1981 and whether he was liable for a valuation overstatement.
Court Accepts Analogy of Outside Board Chair for Reasonable Compensation Case
The issue in this case was whether the company could deduct amounts paid to an officer-shareholder as reasonable compensation during the tax years at issue.
9th Circuit Affirms Tax Court; Noncompete Must Be Amortized Over 15 Years, Not Life of Agreement
Redemption was an “acquisition” within the meaning of IRC section 197 because Frontier regained possession and control over 75% of its stock.