Apartment Rental
This industry comprises establishments primarily engaged in acting as lessors of buildings used as residences or dwellings, such as single-family homes, apartment buildings, and town homes. Included in this industry are owner-lessors and establishments renting real estate and then acting as lessors in subleasing it to others. The establishments in this industry may manage the property themselves or have another establishment manage it for them.
Wong v. Wong
The defendants and plaintiffs were all family members who co-owned seven apartment buildings that the defendants managed. The defendants embezzled profits from the buildings for at least a decade. On appeal, the defendants conceded plaintiffs were entitled to an award of both compensatory and punitive damages based on their wrongdoing, but they challenged the amount of the awards. The appellate court agreed that the punitive damages were excessive as a matter of law and adjusted them. All other defendants’ contentions were rejected, and the trial court was affirmed in those matters.
California Appeals Court Reduces Punitive Damages as Being Excessive
The defendants and plaintiffs were all family members who co-owned seven apartment buildings that the defendants managed. The defendants embezzled profits from the buildings for at least a decade. On appeal, the defendants conceded plaintiffs were entitled to an award of both compensatory and punitive damages based on their wrongdoing, but they challenged the amount of the awards. The appellate court agreed that the punitive damages were excessive as a matter of law and adjusted them. All other defendants’ contentions were rejected, and the trial court was affirmed in those matters.
Corwin v. KKR Fin. Holdings LLC
Regarding breach of fiduciary duty claims, Delaware Supreme Court says business judgment rule (lower standard of review) applies where disinterested stockholder majority approves merger with third party and vote was uncoerced and fully informed.
Giaimo v. Vitale (II)
In dissenting shareholder case, appellate court affirms application of DLOM to statutory fair value of real estate holding companies, as well as present-value discount for taxes on built-in gains (BIG).
Valuing a Hypothetical Asset Renders Appraisal ‘Meaningless’
Tax Court says petitioner failed IRC’s section 170 requirements for charitable contribution deduction because his claim leaned on appraisals of the donated building that were not qualified; neither valuation was timely or established the asset’s fair mark ...
Alli v. Commissioner
Tax Court says petitioner failed IRC’s section 170 requirements for charitable contribution deduction because his claim leaned on appraisals of the donated building that were not qualified; neither valuation was timely or established the asset’s fair mark ...
Can Defendant Disclaim Its Own Projections to Undo Expert’s Valuation?
Appeals court strikes down $28.2 million award to minority owner finding expert’s determination of the present value of the owner’s interest in income-producing properties relied on majority owner’s unreliable internal projections; although a party’s effo ...
Court Credits Expert’s Cash Flow Analysis in Solvency Determination
Bankruptcy Court credits trustee’s expert’s cash flow analysis in finding “billionaire” debtor was insolvent at the time she signed a guarantee for a $13 million loan defendant made to her son; because the transfer was fraudulent, the court sets aside the ...
Citrin Holdings, LLC v. Minnis
Appeals court strikes down $28.2 million award to minority owner finding expert’s determination of the present value of the owner’s interest in income-producing properties relied on majority owner’s unreliable internal projections; although a party’s effo ...
Samson v. Western Capital Partners LLC (In re Blixseth)
Bankruptcy Court credits trustee’s expert’s cash flow analysis in finding “billionaire” debtor was insolvent at the time she signed a guarantee for a $13 million loan defendant made to her son; because the transfer was fraudulent, the court sets aside the ...
NY Court Ratifies DLOM in Fair Value of Real Estate Companies
In dissenting shareholder case, appellate court affirms application of DLOM to statutory fair value of real estate holding companies, as well as present-value discount for taxes on built-in gains (BIG).
IRS Challenges Family LLC as Indirect Gift, Including 58% Marketability Discount
Court finds $2.5 million cash transfers to family limited company are indirect gifts, subject to gift tax for full value, excluding 58% marketability discounts.
Heckerman v. Commissioner
Court finds $2.5 million cash transfers to family limited company are indirect gifts, subject to gift tax for full value, excluding 58% marketability discounts.
‘Fundamental Accuracy’ of Report Fails to Overcome Arbitrary Minority Discount
Minor errors in appraiser’s testimony weren’t fatal—but application of an “arbitrary” minority discount to real estate holding company was.
Pickard v. Pickard
Minor errors in appraiser’s testimony weren’t fatal—but application of an “arbitrary” minority discount to real estate holding company was.
Sufficient evidence must support valuation date
In this marital dissolution case, the issue was the appropriate valuation date for the parties’ 85 operating entities, which, in turn, owned more than 100 residential rental real estate properties.
Scharfman v. Scharfman
In this marital dissolution case, the issue was the appropriate valuation date for the parties' 85 operating entities, which, in turn, owned more than 100 residential rental real estate properties.
Businesses started before legal separation are marital
The issue in this marital dissolution was the classification of three business interests either as the husband's separate property or as marital property.
Kauffman v. Kauffman
At issue is the identification and valuation of the marital property.
Assets transferred to FLP part of estate
Prior to his death, decedent transferred his life interest in his residence, rental properties and other real properties, and investment accounts to the Reichardt Family Trust and Reichardt ...
Blockage Discount Appropriate for Apartment House
The taxpayer was granted a 20% fractional interest discount and an 11% blockage discount with apartment house properties, based on comparable sales and an analysis of market conditions and the economy.
Estate of Reichardt v. Commissioner
114 T.C. No. 9 UNITED STATES TAX COURT ESTATE OF CHARLES E. REICHARDT, DECEASED, WILLIAM D. REICHARDT, INDEPENDENT EXECUTOR, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 1224-98. Filed March 1, 2000. Decedent (D) had two children, C and W. On June 17, 1993, D formed a revocable family trust (the trust) and a family limited partnership (the partnership). The trust was the general partner of the partnership. D, C, and W were ...
Value of Assets Transferred to a Limited Partnership Is Included in Decedent’s Gross Estate
The Tax Court determined that the estate must include the value of partial interests in real property in its gross estate under IRC sec. 2036. The decedent owned interests and life interest in real property. He had the power to consume the property in w ...
Assets Controlled by Decedent After Transfer to FLP Part of Estate
Prior to his death, decedent transferred his life interest in his residence, rental properties and other real properties, and investment accounts to the Reichardt Family Trust and to Reichardt Partners Ltd., a family limited partnership of which the trust was the only general partner.