Wright v. Wright
Court considers the applicability of discounts to a minority shareholder’s interest in an S corp, and whether the company’s retained earnings may be properly attributable to a minority owner for child support determinations.
IRS and Taxpayer Agree to 35% DLOM—If FLP Transfers Pass ‘Indirect Gift’ Tests
Tax Court accepts stipulated 35% DLOM after finding that FLP funding and transfer is not an indirect gift.
Bianca Gross v. Commissioner
Tax Court accepts stipulated 35% DLOM after finding that FLP funding and transfer is not an indirect gift.
In re the Marriage of Thornhill (I)
Colorado Court of Appeals considers extending statutory fair value standard—including preclusion of marketability discounts—to valuing close corporation in divorce.
New Federal Case a ‘Must Read’ for Lost Profits/Lost Business Analysis
Two appraisers testify to lost profits and lost business analysis, defend against Daubert attack. Court examines search for comparables.
Floorgraphics, Inc. v. News America Marketing In-Store Services, Inc.
Two appraisers testify to lost profits and lost business analysis, defend against Daubert attack. Court examines search for comparables.
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.
Dallas v. Commissioner
In a post-Gross decision, the Tax Court considers tax-affecting S Corp earnings and also discounts for lack of marketability and control.
Tax Court Finds 12% Minority Discount and 23% DLOM for Cash-Only FLP
In April 1999, Webster Kelley and his daughter and son-in-law (the Loudens) formed Kelley-Louden Business Properties LLC (KLBP LLC), and Kelley-Louden Ltd., a family limited partnership (KLLP).
Appropriateness of Accounting Principles and Valuation Must Go to Trial
One of the issues in this shareholder dispute was whether stock was correctly valued pursuant to a stock purchase agreement.
Marketability discount may be applied where there is no impending sale but is within court’s discretion
The valuation issues in this marital dissolution were whether a discount for lack of marketability should have been applied to husband’s minority interests in two medical-practice businesses, and whether a buy-sell provision in a third business was determinative of that business's fair market value.
Federal Court’s Declaring Valuation Date and Methodology Does Not Interfere With State Probate
The issue in this case was whether a federal district court could issue a declaratory judgment deciding the meaning of the agreement without interfering with state probate proceedings, and thereby negating federal subject matter jurisdiction.
Estate of Kelley v. Commissioner
In April 1999, Webster Kelley and his daughter and son-in-law ("the Loudens") formed Kelley-Louden Business Properties, LLC (KLBP LLC), and Kelley-Louden, Ltd., a family limited partnership (KLLP).
Built-In Capital Gains Liability of Small Minority Interest Should Be Discounted to Reflect Time Value of Money
The issues in this estate tax case were whether built-in capital gains tax liability should be discounted (indexed) to account for time value and the appropriate discounts for lack of marketability and control.
1st Circuit Affirms FLP Case Against Taxpayer
The 1st Circuit affirmed all aspects of a Tax Court determination unfavorable to the estate of Ida Abraham (the Estate).
K-O Enterprises, Inc. v. O'Brien
One of the issues in this shareholder dispute was whether stock was correctly valued pursuant to a stock purchase agreement.
Uzielli v. Frank
The issue in this case, involving a dispute over the meaning of the operating agreement of Alph Company, LLC (Alph) as to how the company was to be valued upon the death of one its two members, was whether a federal district court could issue a declarator ...
Estate of Jelke v. Commissioner (I)
The issues in this estate tax case were whether built-in capital gains tax liability should be discounted (indexed) to account for time value, and the appropriate discounts for lack of marketability and control.
Estate of Abraham v. Commissioner (II)
The First Circuit affirmed all aspects of a Tax Court determination unfavorable to the estate of Ida Abraham (the Estate).
Fausch v. Fausch
The valuation issues in this marital dissolution were whether a discount for lack of marketability should have been applied to husband's minority interests in two medical-practice businesses, and whether a buy-sell provision in a third business was determ ...
Expert Dubbed "Unpersuasive" Rebuts Judge Laro's Rejection
Dear Shannon: I enjoyed speaking with you on the telephone and I appreciate your taking the time to review the Kaufman case. I have enclosed copies of the case, I have enclosed copies of the case, my initial valuation report of the subject interest as of April 14, 1994, and the supplemental report I prepared at Judge Laro's instruction before trial which addresses the lack of marketability selection specifically in the context of 10 factors mentioned in the Mandelbaum case.
Weinberg v. Commissioner: Good law, bad economics, or both?
Lawyers often comment that good cases make bad law. As an economist, I have a similar comment: good law often comes from bad economics. By definition, a judge’s opinion is good law.
Expert dubbed "unpersuasive" rebuts Judge Laro's rejection
I have reviewed the write up of Estate of Kaufman in the May issue of your newsletter, and I am very concerned that it unfairly portrays me as having not done a credible valuation because it takes Judge Laro's criticisms of my report at face value.
Grace v. Grace
At issue is the valuation and inclusion of husband's ranch stock in the marital estate.
Use of fair market value reasonable even where recipient will obtain control
In this probate case, the court of appeals upheld the district court’s decision to use fair market value rather than ...