Gallagher v. Commissioner (II)
Tax Court corrects a previous error in the present value factor used to value an 80% interest in a privately held limited partnership, resulting in a $3.2 million increase in overall value.
Tax Court Rejects GPCM, Dissects DCF in Valuing Minority LP Interest
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.
Estate of Turner v. Commissioner (I)
Tax Court includes full value of family limited partnership assets in the gross estate after finding that their nature (passive investments in cash and marketable securities) provided no legitimate, nontax reason for their consolidation or management.
Howard v. United States (II)
Ninth circuit upholds finding that a non-competition agreement effectively conveyed a dentist’s personal goodwill to his C corporation, such that it became the corporation’s asset for income tax purposes.
Tax Court Upholds Defined Value Clause
Tax Court upholds defined value formula closes, defeating IRS challenges based on lack of arm’s-length bargaining and contradiction with public policy.
Tax Court Rejects Tax Affecting, CSRP, Poor Comps, and More
Tax Court dismisses guideline company comparable method in this case for lack of true comparables and rejects experts’ DCF for tax affecting and other adjustments without sufficient justification or support.
Estate of Petter v. Commissioner (II)
Ninth Circuit upholds defined value, formula allocation clauses against IRS argument that they require a condition precedent—i.e., an IRS audit and/or determination of fair market value.
Tax Court Confirms Its Position on Subsequent Events re: Contingent Claims
Tax Court denies discount due to “hazards of litigation,” and denies deduction for contingent liability claims that could not be readily ascertained at time of death, due in part to wide disparity in appraisers’ assessment of the claims.
Subsequent Events Not an Issue When Experts Too Far Apart on Contingency Claims
Tax Court holds that different standards apply to including an asset value in an estate and deducting the value of a liability.
In Test Case, Tax Court Uses Daubert to Discredit ‘Absurd’ Appraisal
Tax Court rejects charitable easement appraisal under Daubert, finding the appraisers ignored the before and after method and rejected relevant facts in favor of those that exaggerated value.
Gallagher v. Commissioner (I)
Tax Court dismisses guideline company comparable method in this case for lack of true comparables, and rejects experts’ DCF for tax affecting and other adjustments without sufficient justification or support.
Estate of Giustina v. Commissioner (I)
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.
Hendrix v. Commissioner
Tax Court upholds defined value formula closes, defeating IRS challenges based on lack of arm’s length bargaining and contradiction with public policy.
Estate of Saunders v. Commissioner
Tax Court holds that different standards apply to including an asset value in an estate and deducting the value of a liability; and further, that multiple, divergent expert assessment of contingency claims establish that their value could not be readily a ...
Estate of Foster v. Commissioner
Tax Court denies discount due to “hazards of litigation,” and denies deduction for contingent liability claims that could not be readily ascertained at time of death, due in part to wide disparity in appraisers’ assessment of the claims.
Federal Court Clarifies When IRS Can Subpoena Appraiser’s Work File
9th Circuit confirms that IRS may subpoena appraiser’s work files when the taxpayers’ liability has not yet been “finally determined”—and also no privilege or protections when the report was prepared primarily to comply with tax laws.
Fractional Interest in Estate Tax Turns on Type, Timing of Gift
Whether gifts of property should be valued as a whole or as separate fractional interests, with appropriate discounts, depends on when the interests are separated, during the decedent’s lifetime or at death.
Boltar LLC v. Commissioner
Tax Court rejects charitable easement appraisal under Daubert, finding the appraisers ignored the before and after method and rejected relevant facts in favor of those that exaggerated value.
Mulcahy, Pauritsch, Salvador & Co. v. Commissioner
Tax Court says, under independent investor test, taxpayer is not entitled to presumption that deductions for “consulting fees” are reasonable compensation; firm’s expert relied on irrelevant statistics to support reasonable compensation for services claim ...