Overstated’ Projections Sink Plaintiff’s Fair Value Determination
Magarik v Kraus Earlier this year, a New York trial court presiding over a buyout dispute featuring an online wholesaler of faucets, sinks, and fixtures rebuffed the departing shareholder’s valuation. His expert’s discounted cash flow analysis collapsed on account of...
Clarity on Three 2020 Employer Tax Credits
With the year ending and tax season on the horizon, it can be helpful to get clarity on various tax credits. With COVID impacting the economy and quite possibly your business, you should ensure you can save every dollar you can. Congress enacted three tax credits that...
Tax Court Spurns IRS’ Gift Tax Valuation Theory and Methodology
Grieve v. Commissioner In a gift tax dispute, the U.S. Tax Court recently found for the taxpayer when it rejected the unusual reasoning and methodology the Internal Revenue Service’s trial expert proposed to keep low the discounts applicable to the nonvoting...
Calculations of Value Are Admissible in Divorce, Alabama Appeals Court Confirms
Horne-Ballard v. Ballard About two years ago, in Rohling v. Rohling, an Alabama appeals court upheld a trial court’s decision to admit into evidence a qualified expert’s estimate about the value of the owner spouse’s business based on a calculation engagement....
Indiana and South Carolina Courts Issue Key Discount Rulings
The Indiana Court of Appeals and the South Carolina Supreme Court recently issued noteworthy rulings on the appropriateness of discounts in valuing minority interests. The contexts in which the issue arose were different, but, in both cases, there was a compelled sale...
Employee or Independent Contractor? The Rules May Be Getting Simpler.
In this past election, voters in California approved legislation that allowed companies in the so-called “gig economy” to continue classifying their workers as independent contractors, opposed to employees. This issue isn’t exclusive to California, however, as the...
‘Particular Facts’ Justify Discounts in Mandatory Buyback of Minority Interest, Says Missouri High Court
Robinson v. Langenbach Context is “crucial,” the Supreme Court of Missouri recently said in upholding the use of discounts in the court-ordered buyout of a minority owner’s shares in a family business. At the same time, the court acknowledged that, “usually,” the...
Tax Implications of Holding Precious Metal Assets in Your IRA
With the stock market hitting record levels and interest rates at historic lows, some investors are moving away from low-risk securities like bonds and money-market funds and investing in precious metal such as gold, silver or platinum. If you’re considering doing the...
Five Tax Breaks Expiring This Year
Unless Congress takes action in the next few months, several significant federal tax breaks will expire at the end of this year. In the past, lawmakers have routinely made “extender” provisions to continue expiring tax breaks for another year or two. However, with the...
The IRS Releases this Year’s Top Tax Scams
The IRS compiles and shares a list of common tax scams each year. This year, with the COVID-19 pandemic complicating tax matters in numerous ways, scammers are becoming more aggressive and sophisticated in their methods. Here are some of the scams you should look out...