Expert’s Valuation Method Precludes Improper Inclusion of Goodwill
In using the capitalization of earnings method to value husband’s medical practice, the wife’s expert did not improperly include personal goodwill, the appellate court finds; the valuation rested on actual earnings with some adjustment for reasonable comp ...
Sharp v. Sharp
In using the capitalization of earnings method to value husband’s medical practice, the wife’s expert did not improperly include personal goodwill, the appellate court finds; the valuation rested on actual earnings with some adjustment for reasonable comp ...
Charles v. Charles
California appellate court affirms trial court’s rejection of husband’s motion to value the community business at separation rather than at trial; the latter is the presumed valuation date under state law and the husband’s request was not “good cause,” bu ...
Mulcahy, Pauritsch, Salvador & Co. v. Commissioner
Tax Court says, under independent investor test, taxpayer is not entitled to presumption that deductions for “consulting fees” are reasonable compensation; firm’s expert relied on irrelevant statistics to support reasonable compensation for services claim ...
Menard v. Commissioner (II)
Seventh Circuit reverses Tax Court’s determination of reasonable compensation for CEO of third largest retail hardware chain, questioning its reliance on investor rate of return as the sole driver of a decision, and rejecting its comparison to comparable ...
Art Is Like Any Other Business: Value Must Include Owner’s Reasonable Salary
In valuing inventory original artwork, must divorce court assign reasonable salary to spouse-owner?
Productivity Adjustment Key for Private-Practice Valuations
Determination of reasonable compensation in valuation of private practice (dental) in dissolution case ...
In re Marriage of Haefele
In valuing inventory original artwork, must divorce court assign reasonable salary to spouse-owner?
Schiro v. Schiro
Determination of reasonable compensation in valuation of private practice (dental) in dissolution case ...
Oral Surgeon’s Post-Divorce Reduction in Hours Worked Considered
The Michigan Court of Appeals affirmed the valuation of an interest in an oral surgery practice as a going concern where the goodwill value was computed based on the number of hours the professional performed procedures. Further, the court adopted the ass ...
Brewer Quality Homes, Inc. v. Commissioner (II)
The U.S. Court of Appeals for the Fifth Circuit affirmed the Tax Court’s determination of reasonable and deductible compensation for an owner of a Louisiana mobile home dealership. The compensation was calculated using RMA data for compensation to gross s ...
Beiner, Inc. v. CIR
The U.S. Tax Court considered determined that payments made to a controlling shareholder in 1999 and 2000, which were deducted on the company’s tax returns under sec. 162, were reasonable and deductible for the 2000 tax year but not for the 1999 tax year.
Menard v. Commissioner (I)
The U.S. Tax Court determined that the amount paid by Menard, Inc. to its controlling shareholder as compensation and deducted on its 1998 Federal tax return under sec. 162 was unreasonable. In reaching this conclusion, it valued the long-term incentive c ...
Lack of Understanding of Excess Earnings Method Leads to Marital Award Reflecting Double Dipping
The issue in this marital dissolution was the perceived “double counting” of the husband’s excess earnings from his closely held corporation, Esco.
Steneken v. Steneken (I)
The issue in this marital dissolution was the perceived “double counting” of the husband’s excess earnings from his closely held corporation, Esco.
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.
Tax Court, Frustrated by Inadequate Data, Inscrutable Analyses, Bases Reasonable Compensation on RMA Ratios
The issue in this case was the reasonableness of compensation paid to the shareholder and primary officer of Brewer Quality Homes Inc. (Brewer).