Devoid of Goodwill, Corporation Escapes Income Tax Liability
Tax Court says taxpayer’s company owned no corporate goodwill and had no right to taxpayer’s personal goodwill and, therefore, was not liable under IRC Sect. 311(b)(1); the taxpayer, in turn, was not liable for gifting corporate goodwill to his sons.
High Valuations Complicate Division of Sizable Marital Estate
Appeals court affirms trial court’s above fair market value determinations regarding husband’s interests in various family businesses and the resulting equalization judgment but rejects trial court’s means with which to enforce payment of judgment.
Diez v. Davey
Court rejects expert’s “excess working capital” analysis to determine income for child support purposes saying it conflicts with state statute’s requirement to rely on historical practices when assessing legitimacy of undistributed earnings of an S corp.
Can You Trust a Valuation That Falls Short of AICPA Standards?
Appeals court finds error in trial court’s refusal to value business; even if limited data caused expert’s estimate to fall short of AICPA standard, it was based on the market approach, a “sound and reasonable method to value a closely-held business.”
Crider v. Crider
Appeals court affirms trial court’s above fair market value determinations regarding husband’s interests in various family businesses and the resulting equalization judgment but rejects trial court’s means with which to enforce payment of judgment.
Court Pans Valuation Based on Expert’s Fiction, Not Fact
High court rejects valuation of husband’s interest in closely held company where wife’s expert transformed it from one owned by four people into one managed by one person to increase its overall value.
Bross Trucking, Inc. v. Commissioner
Tax Court says taxpayer’s company owned no corporate goodwill and had no right to taxpayer’s personal goodwill and, therefore, was not liable under IRC Sect. 311(b)(1); the taxpayer, in turn, was not liable for gifting corporate goodwill to his sons.
Hugh v. Hugh
Appeals court finds error in trial court’s refusal to value business; even if limited data caused expert’s estimate to fall short of AICPA standard, it was based on the market approach, a “sound and reasonable method to value a closely-held business.”
In re Marriage of Valente
Appeals court says awarding wife a portion of business and a maintenance award is not double recovery (double dipping) where husband’s reasonable replacement compensation “was carved out of the income streams used for the valuation.”
Ward v. Ward
High court rejects valuation of husband’s interest in closely held company where wife’s expert transformed it from one owned by four people into one managed by one person to increase its overall value.
Schuman v. Schuman
State high court says appeals court erred in classifying wife’s stock awards as separate property based solely on vesting; stock awards are form of deferred compensation, like retirement benefits, and are acquired “when they are earned, and not at the time of receipt, vesting or exercise.”
Rejected option agreement that is part of bigger deal does not determine value
One of the issues in this marital dissolution was the value of husband’s bar, Knicker’s Saloon.
In re Marriage of Gerhard
One of the issues in this marital dissolution was the value of husband's bar, Knicker's Saloon.
In re Marriage of Barnett
Appeals court says awarding wife a lien on business and maintenance represents double recovery where owner was liquidating business and would make maintenance payments from his share of the distributed asset rather than future income derived the asset.