Court of Appeals Sides With Taxpayers on Right to Vet IRS Expert Valuation

by Royer Advisors | Dec 11, 2024 | Business Plans, Court Rulings, IRS Regulation, Valuations

Cavallaro v. Commissioner, 2016 U.S. App. LEXIS 20713 (Nov. 18, 2016) (Cavallaro II) In 2014, taxpayers who had relied on estate planning professionals to affect the transfer of their family business to their sons confronted a tax liability on a $29.6 million gift. A...

Compromised Asset Appraisals Undo Like-Kind Tax Plan

by Royer Advisors | Dec 11, 2024 | Court Rulings, IRS Regulation, Tax Planning, Tax Preparation, Valuations

Exelon Corp. v. Commissioner, 2016 U.S. Tax Ct. LEXIS 26 (Sept. 19, 2016) A Section 1031 case that Judge Laro adjudicated cautions experts about allowing the hiring attorney to assume control over the appraisal. In ruling for the government, the judge found the...

Chancery Bases Fair Value Calculation on Income-Based Model

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

Dunmire v. Farmers & Merchants Bancorp of W. Pa., 2016 Del. Ch. LEXIS 167 (Nov. 10, 2016) In a statutory appraisal action, the Delaware Court of Chancery rejected the deal price as evidence of fair value, citing a suboptimal sales process. Only an income-based...

Case Collapses When Experts Apply Wrong Measure of Damages

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

Sherwood Invs. Overseas Ltd. v. Royal Bank of Scot. N.V. (In re Sherwood Invs. Overseas Ltd., Inc, 2016 U.S. Dist. LEXIS 136096 (Sept. 30, 2016) A bankruptcy proceeding makes clear that, if an expert hopes to support a client’s position, he or she has to know more...

Alerding Comments on Washington State Double-Dip Analysis

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

In re Marriage of Cheng, 2016 Wash. App LEXIS 2854 (Nov. 22, 2016) A double-dip decision out of Washington State prompted a reader’s request for comment from veteran valuator Jim Alerding (Alerding Consulting), who frequently deals with divorce-related valuation...

Spouse’s Unilateral Stock Agreement Sets Value in Divorce Action

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

Baumbouree v. Baumbouree, 2016 La. App. LEXIS 1388 (July 13, 2016). In a Louisiana divorce case, the trial court applied the value stated in a stock agreement the physician owner-spouse had entered into with his firm in the context of partition. In her appeal, the...