Springer v. Library Store
Court upholds lower court ruling that there was no mismanagement of corporate assets; plaintiff failed to show excessive officer compensation and was properly precluded from using testifying expert to introduce another appraiser’s report on excessive rent.
Court Clarifies Application of Rule 703 to Expert Testimony
Court upholds lower court ruling that there was no mismanagement of corporate assets; plaintiff failed to show excessive officer compensation and was properly precluded from using testifying expert to introduce another appraiser’s report on excessive rent.
ASA BVers convene in Houston for the Advanced BV Conference
The conference sessions were an excellent mix of theory and practice—ideas that you can use in your practice right away.
Tax Court Favors IRS’s Cost Markup Analysis to Compute Management Fee
In a suit over fees paid by taxpayers’ operating companies to taxpayer-controlled management company, Tax Court says IRS expert’s cost markup analysis produces most credible arm’s-length management fee; this fee represents the allowable deduction amount.
Wycoff v. Commissioner
In a suit over fees paid by taxpayers’ operating companies to taxpayer-controlled management company, Tax Court says IRS expert’s cost markup analysis produces most credible arm’s-length management fee; this fee represents the allowable deduction amount.
Court Highlights Role of Community Labor in Goodwill Analysis
Appeals court says record supports nonowner spouse’s claim to a share of owner’s CPA’s practice; business changed from separate to community property, and most of its value consisted of professional goodwill, which was created by community labor.
Expert’s Best-Effort Medical Practice Valuation Holds Up on Appeal
Appeals court upholds medical practice valuation despite gaps in expert analysis, including failure to analyze goodwill and exclude premarriage value portion of practice; expert’s job was “complicated” due to owner-spouse’s noncompliance with discovery.
In re Marriage of Vandal
Appeals court says record supports nonowner spouse’s claim to a share of owner’s CPA’s practice; business changed from separate to community property, and most of its value consisted of professional goodwill, which was created by community labor.
Court Highlights Role of Community Labor in Goodwill Analysis
Appeals court says record supports nonowner spouse’s claim to a share of owner’s CPA’s practice; business changed from separate to community property, and most of its value consisted of professional goodwill, which was created by community labor.
Confusion Over Key Valuation Issues Prompts Remand
In shareholder dispute, appeals court says trial court did not follow controlling shareholder agreement requiring appraiser to value the company as an entity; also, appraiser’s report left it unclear whether valuation included improper minority discount.
Reasonable Compensation Analysis Ignores Objective Evidence, Tax Court Says
Tax Court dismisses taxpayer expert’s reasonable compensation analysis as not helpful to trier of fact; court points to failure to consider objective evidence and detects willingness to “validate and confirm” the amounts reported on taxpayer’s returns.
Ramundo v. Ramundo
Appeals court upholds medical practice valuation despite gaps in expert analysis, including failure to analyze goodwill and exclude premarriage value portion of practice; expert’s job was “complicated” due to owner-spouse’s noncompliance with discovery.
Expert’s Best-Effort Medical Practice Valuation Holds Up on Appeal
Appeals court upholds medical practice valuation despite gaps in expert analysis, including failure to analyze goodwill and exclude premarriage value portion of practice; expert’s job was “complicated” due to owner-spouse’s noncompliance with discovery.
Confusion Over Key Valuation Issues Prompts Remand
In shareholder dispute, appeals court says trial court did not follow controlling shareholder agreement requiring appraiser to value the company as an entity; also, appraiser’s report left it unclear whether valuation included improper minority discount.
Swiderski Equip. v. Swiderski
In shareholder dispute, appeals court says trial court did not follow controlling shareholder agreement requiring appraiser to value the company as an entity; also, appraiser’s report left it unclear whether valuation included improper minority discount.
Reasonable Compensation Analysis Ignores Objective Evidence, Tax Court Says
Tax Court dismisses taxpayer expert’s reasonable compensation analysis as not helpful to trier of fact; court points to failure to consider objective evidence and detects willingness to “validate and confirm” the amounts reported on taxpayer’s returns.
Transupport, Inc. v. Commissioner
Tax Court dismisses taxpayer expert’s reasonable compensation analysis as not helpful to trier of fact; court points to failure to consider objective evidence and detects willingness to “validate and confirm” the amounts reported on taxpayer’s returns.
Return on Equity Analysis Undergirds Reasonable Compensation Claim
Tax Court says compensation paid to company owners for managing entity’s daily operations was reasonable; officers were “absolutely integral” to company’s success and company’s rate of return on equity after compensation accorded with industry average.
Demand for Executive Compensation Data Lacks ‘Proper Purpose’
Appeals court finds no error in trial court’s rejection of plaintiff’s demand for inspection of corporate records on executive compensation, where expert testimony showed information was not necessary to value plaintiff’s minority interest in company.
H.W. Johnson v. Commissioner
Tax Court says compensation paid to company owners for managing entity’s daily operations was reasonable; officers were “absolutely integral” to company’s success and company’s rate of return on equity after compensation accorded with industry average.
Pearson v. Westervelt Co.
Appeals court finds no error in trial court’s rejection of plaintiff’s demand for inspection of corporate records on executive compensation, where expert testimony showed information was not necessary to value plaintiff’s minority interest in company.
Marshall v. Marshall (I)
Appeals court says parties’ agreement is ambiguous as to whether distributions related to husband’s ownership in S corp. are includable in alimony and child support calculation; on remand, trial court must determine what income parties meant when specifying use of pretax income from employment.
Courts Agree Reasonable Compensation Is Sound Method for Calculating Spousal Support in S Corp Context
Appeals court says parties’ agreement is ambiguous as to whether distributions related to husband’s ownership in S corp. are includable in alimony and child support calculation; on remand, trial court must determine what income parties meant when specifying use of pretax income from employment.