Minnesota Supreme Court affirms that passive appreciation in nonmarital property is nonmarital
Earnings retained in wife’s AAA were not income because they might never be distributed, nor were the earnings active appreciation.
Case Remanded to Trial Court for Failure to Value the Business
The issue in this marital dissolution was whether the trial court erred in failing to value the company and instead splitting the husband’s stock between the parties.
Bernier v. Bernier (2003)
Bernier v. Bernier (2003) US Massachusetts State Court Family Court Kaplan 5411 Grocery Stores 445110 Supermarkets and Other Grocery (except Convenience) Stores ...
In re the Marriage of Gottsacker
Whether an Accumulated Adjustment Account (AAA) in a subchapter S corporation in which one spouse has a nonmarital interest is marital property depends on the degree of ownership and control ...
Olson v. Olson
The issue in this case is the court's award of stock to the spouse rather than valuing the stock and awarding half the value.
No DLOM Absent Extraordinary Circumstances; Bright-Line Rule Prohibiting Built-in Gains Discount Rejected
The issue, in this case of first impression in Washington, was the propriety of discounts for lack of marketability and built-in capital gains in a dissenters' rights proceeding.
Comparing three payout assumptions impact on values of S versus C corps
As the accompanying editorial suggests, whether S corporation interests are worth more than C corporation interests, at least at the minority interest level, depends on several factors. One important ...
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.
Norton Co v. Smyth
The issue, in this case of first impression in Washington, was the propriety of discounts for lack of marketability and built-in capital gains in a dissenters' rights proceeding.
Bright-Line Rule Barring Discounts Is Inappropriate
The Washington Court of Appeals reversed a trial court’s bright-line rule prohibiting discounts for lack of marketability and built-in capital gains taxes when determining fair value in a dissenters’ rights action.
"Highly troubled" by Estate of Adams
I am highly troubled by several recent circumstances. You are familiar with Gross (BV Update has discussed it at length). It is clear to anyone with a modicum of financial background that ...
Caracci v. Commissioner (I)
The issue was whether the value of the Sta-Home Health Agency, Inc. (SHHA) and related entities transferred into S corporations exceeded the consideration paid.
Whether to mark up assets; Whether to tax affect gains
My question is in relation to a divorce case in which the main marital asset is an operating retail business. The business is organized as an S corporation and it possesses appreciated real ...
Tax Court Rejects Use of Single 'Similar' Comparable
This issue in this estate tax matter was the fair market value of decedent's 630 shares (a 39.62% interest) in F. Korbel & Bros. Inc. on Feb. 15, 1995, her date of death.
Heck v. Commissioner
Business Valuation and Taxes: Procedure, Law and Perspective ...
A Gross Result in the Gross Case Calls Into Question Circumstances in Which Tax Affecting Is Valid
Appraisers may soon have to defend their tax affecting in prior S corporation valuations as a result of Gross.
Daubert Issue Rears Its Ugly Head in Gross Case
George Hawkins wrote a guest abstract of this case in the January 2002 issue of Shannon Pratt's Business Valuation Update focusing on the tax affecting issues in the case.
Application of Minority, Marketability Discounts Was Error
In this corporate dissenter's rights action, Lindoe Inc. appealed the trial court's valuation of its stock in Pueblo Bancorporation, a bank holding company.
Gross v. Commissioner (II)
Issues involved tax affecting of the discounted cash flows of the company and the size of the marketability discount.
0% Reduction for Tax Affecting Affirmed
The 6th Circuit affirmed the Tax Court’s valuation of gifted minority interests in a closely held S corporation.
What is "fair value" under Alabama's dissenting shareholder statute?
Caroline Smith Gidiere The Alabama Lawyer , May 2001 The author begins by citing the Alabama dissenting shareholder statute that entitles a qualifying shareholder to "fair value," and notes ...
Pueblo Bancorporation v. Lindoe, Inc. (I)
At issue is the valuation of shareholders stock in plaintiff, Pueblo Bancorporation.
Application of Minority, Marketability Discounts
In this corporate dissenter's rights action, Lindoe Inc. appealed the trial court's valuation of its stock in Pueblo Bancorporation, a bank holding company.
Application of Discounts Inappropriate
The Colorado Court of Appeals considered the valuation of a bank holding company in this dissenting shareholder action. It determined that minority interest and lack of marketability discounts were inappropriate in dissenting shareholder actions as a matt ...
How to value pass-through entities
Valuation of Pass-Through Entities , Gregory A. Barber, Valuation Strategies , March/April 2001, Vol. 4, No. 4, pp. 4-11, 44-45. A debate has ensued amongst the valuation community since Gro ...