Defective Lost Profits Analysis Triggers Take-Nothing Ruling

by Royer Advisors | Dec 11, 2024 | Court Rulings

Horizon Health Corp. v. Acadia Healthcare Co The Texas Supreme Court issued an important opinion on future lost profits that illustrates how a damages analysis that has some support in the evidence may still fail to meet the legal standard of “reasonable certainty.”...

Eleventh Circuit Affirms Tax Court’s Valuation of Trust’s Interest in LLC

by Royer Advisors | Dec 11, 2024 | Court Rulings, Valuations

Estate of Koons v. Commissioner (Koons II)  The 11th Circuit Court of Appeals upheld a 2013 Tax Court ruling in an estate and generation-skipping tax case that centered on the fair market value of a revocable trust’s interest in an LLC. The crux of the valuation was...

Improper Use of Active/Passive Framework Skewers Valuation

by Royer Advisors | Dec 11, 2024 | Court Rulings, Valuations

Bair v. Bair  When confronted with quantifying the appreciation of non-marital property, it is common for valuators first to classify the change in value as “active” or “passive” and then do the valuation. A Florida case shows that, when applied prematurely, this...

In Controversial Move, Tax Court Tackles ‘Double Inclusion’ Problem 

by Royer Advisors | Dec 11, 2024 | Court Rulings, Valuations

Estate of Powell v. Commissioner  Given the unfavorable optics of a recent case, the Tax Court’s finding that the value of assets transferred from the decedent to a family limited partnership was includible in the value of the decedent’s gross estate is not...

Balance Your Right to Monitor Communications with Employees’ Privacy Rights

by Royer Advisors | Dec 11, 2024 | Court Rulings

Have you considered monitoring your employees’ communications at work? It’s a delicate balance to create a policy to monitor employees activities and protect your company without violating employees’ legal privacy protections. But you may have legitimate reasons for...

Tax Court’s Valuation of Trust’s Interest in LLC Weathers Appeal

by Royer Advisors | Dec 11, 2024 | Court Rulings, Valuations

Estate of Koons v. Commissioner (Koons II), The 11th Circuit Court of Appeals upheld a 2013 Tax Court ruling involving a revocable trust’s interest in a limited partnership. The valuation turned on the marketability discount. The 11th Circuit opinion shows the Tax...