Interdisciplinary Appraisal Cannot Prevent Incomplete Valuation
In valuing husband’s partnership interest in rental-storage business, trial court could consider income-capitalization or cost approach and adopt valuation that included non-controlling (minority) interest discount of 33% based on real estate appraiser’s ...
Estate of Koons v. Commissioner
In determining the fair market value of a revocable trust’s interest in an LLC, the Tax Court adopts the IRS expert’s marketability discount and valuation; he rightly assumed it was reasonably foreseeable at the time of the decedent’s death that the trust ...
Pappas v. Pappas
In valuing husband’s partnership interest in rental-storage business, trial court could consider income capitalization or cost approach and adopt valuation that included non-controlling (minority) interest discount of 33% based on real estate appraiser’s ...
Halliday v. Halliday
Trial court did not overvalue husband’s interests in various businesses since it applied a DLOC whenever the husband did not have a 100% interest in the company and a DLOM that was consistent with expert testimony, state Court of Appeals finds.
Keig v. Keig
State Court of Appeals values husband’s interest in a family agricultural business at $1 million, including a discount for lack of control, and finds lower court’s $250,000 Grace award to spouse to compensate for exclusion of the value of the business fro ...
Caveney v. Caveney
Massachusetts Court of Appeals confirms that the fair value standard in divorce cases precludes application of any discount, either for lack of marketability or lack of control, for any closely held company, even highly restricted shares in family owned b ...
Short v. Short
Appraisal used in estate tax valuation, which included substantial discounts for lack of marketability and control, were inappropriate for use 10 years later in divorce.
Doe v. Roe
Court confirms trial court’s application of double discounts (marketability and minority) and evidence of prior sales to value several closely held interests in divorce.
Can a Trial Court Value a Restaurant Based on Cash Flow But Ignore Gross Sales?
Husband appeals value of a restaurant that included only a portion of his expert report’s (cash flow) without accounting for the other portion (gross sales).
Foppe v. Foppe
Husband appeals value of a restaurant that included only a portion of his expert report’s (cash flow) without accounting for the other portion (gross sales).
In re Marriage of Williams
Montana high court rejects 35% minority discount to husband’s half interest in a closely held, family business, which he owned with his father and had equal say over operations, management, and application of funds.
ASARCO v. Americas Mining Corp. (II)
Federal district court considers whether control premium can be an element of damages in fraudulent transfer/breach of fiduciary duties in bankruptcy case.
ASARCO v. Americas Mining Corp. (I)
Fraudulent transfer claims in bankruptcy turn on multi-million dollar valuation of controlling interest in foreign mining company.
Bussa v. Bussa
Divorce court discounts for flawed comparables and lack of control in valuation of four related companies.
Estate of Cyril Magnin v. Commissioner (II)
*This Memorandum Opinion supplements our Memorandum Opinion in Estate of Magnin v. Commissioner, T.C. Memo. 1996-25, revd. and remanded 184 F.3d 1074 (9th Cir. 1999). T.C. Memo. 2001-31 UNITED STATES TAX COURT ESTATE OF CYRIL I. MAGNIN, DECEASED, DONALD ISAAC MAGNIN, EXECUTOR, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent* Docket No. 24883-92. Filed February 12, 2001. Stuart S. Lipton, Frederick J. Adam, Jerome B. Falk, Jr., Douglas A. Winthrop, and Denise M. Riley, for ...
Tax Court Declines to Tax Affect S Corp in Gift Transfer Case
In a post-Gross decision, the Tax Court considers tax affecting S corp earnings and also discounts for lack of marketability and control.