Delaware block method not appropriate for marital dissolution; valuation that considers multiple factors prevails
The primary issues in this marital dissolution were whether the trial court used a proper methodology in valuing the parties’ business, International Book Import Service Inc.
Court Accepts Analogy of Outside Board Chair for Reasonable Compensation Case
The issue in this case was whether the company could deduct amounts paid to an officer-shareholder as reasonable compensation during the tax years at issue.
“The small firm risk premium remains largely a myth”
This article is another installment in the long-running debate about whether small companies are riskier than large companies, all other things being equal.
ICBC 27th Annual National Conference
One of the most interesting presentation at the Institute of Certified Business Counselors 27th Annual National Conference ...
9th Circuit Affirms Tax Court; Noncompete Must Be Amortized Over 15 Years, Not Life of Agreement
Redemption was an “acquisition” within the meaning of IRC section 197 because Frontier regained possession and control over 75% of its stock.
Redemptions of ESOP Shares Were Deductible Dividends
The question of whether the distributions to plan participants are deductible dividends depends on who owned the convertible preferred stock when the redemptions took place.
Walford v. Commissioner
The overvaluation of an "emergency management system" resulted in the Commissioner disallowing a deduction made on the basis of the value of that asset. Subsequent sale showed act ...
Subsidiaries' Licensing of IP Rights to Parents Created Sufficient Taxing Nexus
These consolidated cases concerned state income taxes of two corporations that did no business in Maryland but were subsidiaries of parents that did do business there.
Kerce v. Kerce
Issue was the valuation of the parties' book import business, and the proper methodology for determining value.
Thomas F. Brady, et al. v. Daniel B Miller, M.D., et al.
The Ohio Court of Appeals, 2nd District, reversed a trial court’s decision to grant a remittitur with regard to the lost wages award in this medical malpractice case because the remittitur was granted without the plaintiff's consent.
Tax Court Accepts Negative Industry Risk Premium and Unique Combined Discount Matrix
The decedent, Helen Deputy, formed a family limited partnership comprised of 99% of a limited partnership interest retained by Deputy and two 0.5% general partnership interests, one held by Deputy and one held by her son.
E.J. Harrison and Sons, Inc. v. Commissioner
Issue is whether compensation paid to taxpayer's officer was reasonable compensation that was therefore deductible.
Entire Settlement Payment Is Purchase Price
One of the issues for the Tax Court was whether $4,856,922 of a $19,886,922 settlement made by Indeck Energy Services, Inc. to Michael P. Polsky was interest deductible by Indeck and recognizable as ordinary income to Polsky or whether it was part of the purchase price for shares of Indeck stock held by Polsky.
Estate of Deputy v. Commissioner
Issue was the fair market value of a 19.99% interest of stock owned by an FLP, and court discussed negative industry risk premium and unique matrix for determining marketability discount.
Comptroller v. SYL, Inc.
Issue is whether there is a sufficient nexus between the State of Maryland and each subsidiary corporation to impose Maryland income tax.
Frontier Chevrolet Co. v. Commissioner
Issue is whether company's redemption of 75% of its stock was an “acquisition” within the meaning of IRC section 197, and whether the covenant not to compete needed to be amortized.
Boise Cascade Corp. v. United States
Issue is whether distributions to ESOP plan participants are deductible dividends.
Indeck Energy Services, Inc. v. Commissioner
Issues are whether part of settlement payment constitutes interest deductible by Indeck and recognizable as ordinary income by petitioners, and whether penalties apply.
Court values and distributes partner's interest in enterprise goodwill of Ernst & Young
One of the issues in this marital dissolution was the value of the husband's partnership interest in the accounting firm of Ernst & Young ("E&Y"), including his interest ...
Bankruptcy Court Indicates Strong Preference for Market Approach, Price Per Subscriber Multiple
This trial court matter involves an adversarial proceeding in bankruptcy in which the liquidating trustee asserts that USN Communications,Inc.'s ("the debtor") purchase of Connecticut Telephone and Connecticut Mobilecom (CT Tel) stock from the Hatten sellers for $68 million was a fraudulent transfer.
Trial Court's 'Inverse Scale' Was Not Double Dipping
The issues in this case were whether the trial court (1) erred in determining the valuation date of the husband's business and (2) overvalued husband's business. Facts The parties were ...
Court Judges Assessment of Risk Factors, Marketability Discount Evidence
The issue in this consolidated case was the fair market value of two minority nonvoting stock interests in Schwan's Sales Enterprises Inc. (SSE), one as of Dec. 31, 1992 (date of gift) and the other as of Dec. 31, 1994 (date of charitable contribution).
Bobrow v. Bobrow
One of the issues in this marital dissolution was the value of the husband's partnership interest in the accounting firm of Ernst & Young ("E&Y").
Tournier v. Tournier
The issues in this case were whether the trial court (1) erred in determining the valuation date of the husband's business and (2) overvalued husband's business.
Tax Court Chooses Market Approach Over Asset Approach
The issue in this consolidated case involving the Caracci family was whether the value of the Sta-Home Health Agency Inc. (SHHA) and related entities transferred into S corporations exceeded the consideration paid.