In Big Buyout Ruling, Minnesota Court Rejects DLOM in Calculating Fair Value
In a forced buyout, court says experts were too partisan to their clients, compromising value analysis; court performs its own valuation using DCF to determine fair value of grocery business and rejects DLOM because no unfair transfer of wealth occurs.
Lund v. Lund (I)
In a forced buyout, court says experts were too partisan to their clients, compromising value analysis; court performs its own valuation using DCF to determine fair value of grocery business and rejects DLOM because no unfair transfer of wealth occurs.
Schewe v. Schewe Farms
Appellate court affirms fair value determination of distributional interest in family farm based on multiprong valuation; company is not a holding company, and net asset valuation alone fails to capture fair value of dissociating members’ interest.
NAV Alone Fails to Capture Distributional Interest’s Fair Value
Appellate court affirms fair value determination of distributional interest in family farm based on multiprong valuation; company is not a holding company, and net asset valuation alone fails to capture fair value of dissociating members’ interest.
Valid Nontax Purpose for Transfer to Holding Company Does Not Save Subsequent Transfer to FLP
This case does a good job of reviewing most of the significant decisions in this area and can serve as a minireference guide to the latest in FLP law.
Sufficient evidence must support valuation date
In this marital dissolution case, the issue was the appropriate valuation date for the parties’ 85 operating entities, which, in turn, owned more than 100 residential rental real estate properties.
Scharfman v. Scharfman
In this marital dissolution case, the issue was the appropriate valuation date for the parties' 85 operating entities, which, in turn, owned more than 100 residential rental real estate properties.
Estate of Bongard v. Commissioner
In this estate tax case, there were two issues: whether pursuant to IRC Sections 2035(a) and 2036(a), (b) the gross estate should have included: (1) shares Wayne Bongard (decedent) transferred to a holding company and (2) the holding company's membership ...
Goodwill in funeral business; expert deemed qualified
In this case husband argued that the trial court erred in finding that the stock of Donn James Holdings Inc. (Donn James) was marital property and that the valuation of the company's stock was based upon improperly admitted opinion testimony.
James v. James
Husband argued that the trial court erred in finding that stock was marital property and based the valuation of the stock on improperly admitted opinion testimony.
Mississippi Supreme Court Upholds Rejection of Minority and Marketability Discounts
This case came to the Mississippi Supreme Court on appeal from the Court of Chancery.
5th Circuit Acknowledges Substantial Built-In Tax Liability on Timber Property
The issue on appeal was whether the Tax Court erred in the valuation of closely held stock and improperly denied a full discount for capital gains liability.
Richton Bank & Trust Co. v. Bowen
The issue was whether the chancellor erred in eliminating discounts for lack of marketability and minority status from his determination of fair value.
Estate of Jameson v. Commissioner
At issue is whether the Tax Court erred in valuing assets of Johnco, Inc. ("Johnco"), a holding company that is part of the estate.
5th Circuit Reverses Tax Court's Capital Gains Discount 'Model'
The issue on appeal was whether the Tax Court erred in the valuation of closely held stock and improperly denied a full discount for capital gains liability.
Tax Court Considers QMDM and Restricted Stock Studies in Determining Discount for Lack of Marketability
In November 1992, the Petitioners gifted shares of St. Edward Management Co. (the "Company") common stock to their children.
Janda v. Commissioner
In November 1992, the Petitioners gifted shares of St. Edward Management Company (the "Company") common stock to their children. Each gift represented approximately 5.3% of the outstanding shares of common stock. St. Edward Management Co. owned 94.6% of the common stock of the Bank of St. Edward (the Bank), a bank located in a small agricultural community in Nebraska.
Blitch v. The Peoples Bank
At issue is whether minority and marketability discounts are applicable in determining the fair value of dissenters' shares under the Georgia statute.
Discounts Not Applicable in Georgia Fair Value Determination
Minority shareholder J. Dan Blitch III owned 763.5 shares of The Peoples Bank (Bank), which composed 5.5% of the outstanding stock of the corporation.
Kansas Supreme Court Disallows Minority and Marketability Discounts in Shareholder Freeze-Out
The Supreme Court of Kansas heard an issue of first impression in this case: "Is it proper for a corporation to determine the 'fair value' of a fractional share pursuant to K.S.A. 17-6405 by applying minority and marketability discounts when the fractional share resulted from a reverse stock split intended to eliminate the minority shareholder's interest in the corporation?"
Arnaud v. Stockgrowers State Bank
At issue is the fair value of fractional shares that resulted from a reverse stock split intended to eliminate the minority shareholder's interest in the corporation.
Expert Qualifications Key to Court Decision
The primary issue in the ESOP litigation the Secretary of the United States Department of Labor (DOL) filed is the fair market value of the Hall Holding Co. stock the Hall Holding ESOP purchased.
Reich v. Hall Holding Company, Inc.
At issue is the fair market value of the Hall Holding stock purchased by the Hall ESOP.
Adjustments Required to Value Holding Company Stock
The primary issue in this ESOP litigation is the fair market value of the Hall Holding Co. stock the Hall Holding ESOP purchased.
Applicability of the Davis case
The court in the Davis case allowed an increased marketability discount to recognize the potential built-in gains tax. The Eisenberg case also appears to follow the same path. In both c ...