Mississippi High Court Rejects Earnings Capacity Approach
State high court says loss of future earnings calculation does not determine value of injured or dead person, but the sum that replaces the money the victim would have earned; court rejects earnings capacity approach and mandates use of actual income.
Rebelwood Apts. RP, LP v. English
State high court says loss of future earnings calculation does not determine value of injured or dead person, but the sum that replaces the money the victim would have earned; court rejects earnings capacity approach and mandates use of actual income.
Menard v. Commissioner (II)
Seventh Circuit reverses Tax Court’s determination of reasonable compensation for CEO of third largest retail hardware chain, questioning its reliance on investor rate of return as the sole driver of a decision, and rejecting its comparison to comparable ...
Art Is Like Any Other Business: Value Must Include Owner’s Reasonable Salary
In valuing inventory original artwork, must divorce court assign reasonable salary to spouse-owner?
Productivity Adjustment Key for Private-Practice Valuations
Determination of reasonable compensation in valuation of private practice (dental) in dissolution case ...
In re Marriage of Haefele
In valuing inventory original artwork, must divorce court assign reasonable salary to spouse-owner?
Schiro v. Schiro
Determination of reasonable compensation in valuation of private practice (dental) in dissolution case ...
Oral Surgeon’s Post-Divorce Reduction in Hours Worked Considered
The Michigan Court of Appeals affirmed the valuation of an interest in an oral surgery practice as a going concern where the goodwill value was computed based on the number of hours the professional performed procedures. Further, the court adopted the ass ...
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 ...
Valuation expert provides insight on Howell v. Howell - Court accepts value to owner versus fair market value
The April 1999 issue of Judges & Lawyers Business Valuation Update summarized the opinion of the trial court in Howell v. Howell , 1998 WL 972312 (Va Cir. Ct.). This is a notable e ...
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.
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 ...
Lack of Understanding of Excess Earnings Method Leads to Marital Award Reflecting Double Dipping
The issue in this marital dissolution was the perceived “double counting” of the husband’s excess earnings from his closely held corporation, Esco.
Steneken v. Steneken (I)
The issue in this marital dissolution was the perceived “double counting” of the husband’s excess earnings from his closely held corporation, Esco.
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.
Tax Court, Frustrated by Inadequate Data, Inscrutable Analyses, Bases Reasonable Compensation on RMA Ratios
The issue in this case was the reasonableness of compensation paid to the shareholder and primary officer of Brewer Quality Homes Inc. (Brewer).
E.J. Harrison and Sons, Inc. v. Commissioner
Issue is whether compensation paid to taxpayer's officer was reasonable compensation that was therefore deductible.
Brewer Quality Homes, Inc. v. Commissioner (I)
Issue is the extent to which amounts that petitioner paid to shareholder-officer are deductible as reasonable compensation under section 162(a)(1).
Court values and distributes partner's interest in enterprise goodwill of Ernst & Young
One of the issues in this marital dissolution was the value of the husband's partnership interest in the accounting firm of Ernst & Young ("E&Y"), including his interest ...
Revised Opinion on Rehearing
In the February 2002 issue, we abstracted the Dec. 10, 2001, opinion in this case. Both parties filed petitions for rehearing, which were granted. This opinion on rehearing replaces the original opinion. The only material change in the new opinion addresses when the withdrawing partner's debt to the partnership should be offset.