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 ...
ESOPS and S corporations
S Corporation ESOPs in Dispositive Sales and Reorganization Transactions , Allen Buckley, Lynda M. Crouse, and Greg Kniesel, Valuation Strategies , January/February 2001, pp.20-29, 46-48. Thi ...
Risks are appropriately reflected in discount rate
The Gross Decision Revisited , Edward Giardina, Business Valuation Review , December 2000, Vol. 19, No. 4. pp.213-217. This article focuses on the U.S. Tax Court case of Walter L. Gross, Jr.
Wall v. Commissioner
The issue was the fair market value of 9,380 shares of the company's nonvoting common stock, which the majority shareholder gifted into trusts.
Tax Court Criticizes Experts' Application of Market Approach and Income Approach
This was a gift tax valuation case in which the sole issue for decision was the fair market value of 9,380 shares of the company's nonvoting common stock, which the majority shareholder gifted into trusts for the benefit of his children.
Impact of death-tax elimination on appraisers
The last couple of years have seen a continuing (and increasing) discussion about the elimination of the federal estate and gift tax, otherwise known as the death tax. Many businesses are at least p ...
Not Necessary to Tax Affect Pepsi Bottler S Corp Earnings
Petitioners in this case were gifted a total of 373.5 shares of common stock out of 19,680 outstanding shares in G&J Pepsi-Cola Bottlers Inc. (an S corporation) from their parents, and each filed a Form 709 (United States Gift and Generation Skipping Transfer Tax Return) in a timely manner.
Stock valuation issues for S corporation ESOPS
Valuation Issues for ESOPs in S Corporations By David C. Light Richard C. May Introduction Recent changes in the tax law have opened the door to a significant new opportunity ...
Gross v. Commissioner (I)
Business Valuation and Taxes: Procedure, Law and Perspective ...