Kardash v. Commissioner (II)
In transferee liability case, Tax Court reconsiders parts of its original solvency determination and clarifies that its analysis relies largely on IRS expert’s market multiple valuation, rather than the asset accumulation value the expert had recommended.
Tax Court Tacitly Approves of IRS Solvency Assessment
In transferee liability case, solvency experts use gamut of valuation methods to establish when subject became insolvent; Tax Court does not endorse any one approach but appears to give nod to IRS market-based solvency analysis.
Treatment of Debt Skews Valuation of Franchise Business
Appeals court acknowledges impossibility of duplicating calculations underlying trial court’s valuation of husband’s LLC owning McDonald’s franchises but surmises result hinges on treatment of funds from family trust to LLC as debt, rather than equity.
Kardash v. Commissioner (I)
In transferee liability case, solvency experts use gamut of valuation methods to establish when subject became insolvent; Tax Court does not endorse any one approach but appears to give nod to IRS market-based solvency analysis.
Valuations Bolster IRS’s Transferee Liability Claim
In transferee liability case, Tax Court finds IRS proved petitioner was liable for causing company’s fraudulent asset transfers and benefitted from intermediary company’s fraudulent transfer; valuations showed company was insolvent at time of transfers.
Freihage v. Freihage
Appeals court acknowledges impossibility of duplicating calculations underlying trial court’s valuation of husband’s LLC owning McDonald’s franchises but surmises result hinges on treatment of funds from family trust to LLC as debt, rather than equity.
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.
Cullifer v. Commissioner
In transferee liability case, Tax Court finds IRS proved petitioner was liable for causing company’s fraudulent asset transfers and benefitted from intermediary company’s fraudulent transfer; valuations showed company was insolvent at time of transfers.
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.
Garza v. Asbestos Corporation, Ltd.
$10 million punitive damages award is upheld, thanks in large part to BV expert's testimony.
Management Overlay Must Be Factored Into Valuation of an Affiliated Entity
Milo Fields Trust owned minority interests in two limited liability companies (LLCs), PMB of Hackensack LLC and PMB of Union City LLC.
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.
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 ...
Milo Fields Trust v. Britz
Milo Fields Trust owned minority interests in two limited liability companies (LLCs), PMB of Hackensack, L.L.C. and PMB of Union City, L.L.C. Gary Fields (Fields) was trustee. These LLCs, along with others like them, had been formed by Jeffrey Britz, who ...
LLC Agreement Provides No Buyout Option for Withdrawing Member
The issue in this case was the status of a member’s capital contribution and equity in an LLC.
Lieberman v. Wyoming.com LLC (II)
Issue in this LLC member withdrawal action was whether the operating agreement governed value of withdrawing members interest, and if not, what was appropriate standard of value.
7th Circuit Affirms Tax Court; Gifts Were of Future Interests
This opinion is the 7th Circuit Court of Appeals’ ruling on appeal from the Tax Court opinion of Hackl v. Commissioner, 118 T.C. 279 (U.S. Tax Ct. 2002).
Hackl v. Commissioner (II)
Issue was whether restrictions on transfer in operating agreement meant that the gifted shares were "essentially without immediate value to the donees."
Lack of Present Economic Benefit Results in Finding of Future Interest
In the April 2002 issue of Shannon Pratt's Business Valuation Update, Owen Fiore and Erin Wilms discussed various attacks by the IRS on pass-through entities.
Hackl v. Commissioner (I)
The issue was whether the gifts were present interests or future interests under Section 2503(b) of the tax code.
Gifts of Future Interest Do Not Qualify for Sec. 2503(b) Exclusion
The full Tax Court considered whether gifted LLC units subject to a restrictive operating agreement were gifts of a present or future interest in the gifted property for the purposes of the annual gift tax exclusion.