The IRS' 'More Reliable' Valuation Accepted Over Estate Valuation
This case involves a hearing on remand from the 9th Circuit to provide sufficient analysis of the consideration value of common and preferred stock in two closely held companies transferred and received by Cyril Magnin, the life estate holder.
Discount rates based on CAPM don't always lead to minority value
The following quote from the fourth edition of Valuing a Business , contained at page 161 in the chapter titled "The Income Approach: Discounted Future Income Method," apparently has been misconstrue ...
Business purpose and economic substance in FLP
Tax Notes , Janurary 1, 2001, Vol. 90 This note addresses family limited partnership (FLP) business purposes and economic substance with respect to transfer taxes, using two recent Tax Court cases ...
Option With No Bona Fide Business Purpose Not Relevant to FMV
This case deals with the valuation for estate tax purposes of four Housing and Urban Development (HUD) housing partnerships and one real estate management partnership.
Estate of Godley v. Commissioner (I)
At issue in the equitable distribution litigation was the value of Fred Jr.'s 50-percent general partnership interest in the partnerships.
Emerging Valuation Trends in Delaware
n EMERGING VALUATION TRENDS IN DELAWARE, Nolen, Samuel S., and Silberglied, Russell C. The Review of Securities & Commodities Regulation , Vol. 31, No. 14, August 1998. This article be ...
Judge Laro's views on discounts & valuation reports
Valuation is a fascinating subject because, like beauty, value is in the perception of the beholder. As early as 42 B.C., Publilius Syrus said "Everything is worth what its purchaser will pay for it ...
Conduct of the parties now a factor in New Jersey fair value determinations
Two recent New Jersey Supreme Court business valuation decisions seem to have established the principle that the behavior of a party seeking a fair value determination can play a role in determining ...
Minority v. control discount rate
We are currently trying to find support refuting the argument that discount rates developed by using minority trades in publicly traded stocks result in a minority value. In your book Valu ...
Taxpayer Victory on FLP Recognition
On Jan. 18, 2000, Judge Orlando Garcia of the United States District Court ruled in favor of the taxpayer in the first family limited partnership case to be tried in a federal district court.
Church v. United States (I)
At issue is whether a partnership transaction was entered into for no purpose other than to reduce the taxation of Mrs. Church's estate.
Family Limited Partnership Formed Two Days Before Death Not Sham Transaction
The primary issue in this estate tax refund action was whether Stumberg Ranch Partners Ltd. was formed for a bona fide business purpose, or was a sham transaction designed to avoid estate and gift taxes.
No Gift Tax Due When Partnership Was Formed Two Days Before Death
The U.S. District Court for the Western District of Texas rejected the IRS' position that gift tax was due on the formation of a family limited partnership formed two days before the decedent's death.
Liquidity Discount Inappropriate in Fair Value Case
The issue in this judicial appraisal action was the fair value of petitioners' 500,000 shares of WXL International Inc.
Borruso v. Communications Telesystems International
At issue is the fair value of the shares of common stock of WXL International, Inc. ("WXL"), a Delaware corporation, on the date on which WXL was merged with a with and into its parent corporation, Communications Telesystems International.
Court Concludes Fair Value Is 30 Times Price, Originally Offered Marketability Discount Inappropriate in Delaware Fair Value Case
The issue in this judicial appraisal action was the fair value of petitioners' 500,000 shares of WXL International Inc. (WXL).
Getting a grip on control premium stats
" Using Control Premium Statistics: Premises of Value and Valuations ," Julius, J. Michael, CPA Litigation Service Counselor , July 1999, pp. 8-10. We must use caution when applying control premiu ...
Matthews critiques Mercers Simplot case review
Chris Mercer reviewed the Simplot case in the May 1999 issue of BVU , page 1. Gil Matthews, an IRS expert in the case, offers the following critique of Mercers review.–SP In his review ...
DCF Method Appropriate for Valuing General Contractor
In 1992, May Rakow gave 1,780 shares of Illinois Hydraulic Construction Co. (IHC) stock to her children and grandchildren.
Rakow v. Commissioner
At issue is the fair market value of stock given by petitioner to her children and grandchildren.
Court Accepts Expert's Value Based on 'Thoroughness and Credibility'
Trapp Family Lodge Inc. (TFL) gave notice of a special meeting of shareholders to vote on a proposed merger.
Control premiums? Maybe, maybe not'34% of 3rd Quarter buyouts at discounts
Valuation analysts who use the guideline public-company valuation method and then automatically tack on a percentage "control premium" based on Mergerstat Review control premium averages, had bett ...
Speakers discuss landmark cases, market approach and discounts
This report concludes our coverage of the Nov. 15-17 AICPA Business Valuation Conference. For summaries of other presentations and a list of audiotapes available, see BVU December, 1998, pp. 1-4.
In re 75,629 Shares of Common Stock of Trapp Family Lodge, Inc.
At issue is the admittance of expert testimony and the valuation of the corporation's stock.
Court Accepts Expert's Value Based on 'Thoroughness and Credibility': First Judicial Interpretation of Vermont Dissenters' Rights Statute
The issue in this judicial appraisal action was whether the trial court erred in adapting the valuation of $63.44 per share.