Business valuation cases: divorce, estates, gifts, discounts, methods

Business Valuation Specialists, Charlotte, North Carolina

Banister Financial, located in Charlotte, North Carolina, specializes in business valuations of privately-owned companies, professional practices, and other types of businesses.

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Essential Business Valuation Cases

Business Valuation Issues in Estates/Gifts, Divorce, Shareholder Disputes, IRS Revenue Rulings

Cases are in PDF- If your browser blocks pdfs you will need to allow them for our website.

Note- Case listings as shown here are not the formal legal cite. Wording is greatly simplified here for readability purposes. The actual pdf of the case in each link has the full citation.

Read the important disclaimer at the bottom of this page regarding the content on this page as well as the Terms and Conditions of Use.*

Abbreviations:
1) US- United States
2) Ct- Court
3) Supr- Supreme
4) Chanc- Chancery
5) NC- North Carolina
6) SC- South Carolina
7) MA- Massachusetts
8) If a number is listed after a U.S. Court of Appeals case it is the circuit.

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Aggregation of Non-Voting Shares with Voting in Estates for Business Valuation (no non-voting discount on non-voting shares when holding controlling voting shares)
- Ahmanson (US Ct App)
- Curry (US Ct App)
Blockage Discounts / Real Estate Valuation
- Bracato (US Tax Ct)
Blockage Discounts / Restricted Stock Valuation
Built In Capital Gains in Business Valuation for Gift and Estate Tax Purposes
Buy-Sell Agreements and Business Valuation Impacts
- Newhouse (US Tax Ct)
Control, But Not Full Control in Business Valuation
- Godley (US Tax Ct)
Covenants Not to Compete in Business Valuation
- Hess (US Tax Ct)
Cyclical Industries- Business Valuation Issues
- Hess (US Tax Ct)
Discounted Cash Flow (DCF) Business Valuation Method
Defined Value Clauses in Business Valuation Gifting and Transfer
Expert Testimony - Cases (Federal)
- Daubert v. Merrill Dow (US Supr Ct)
- Kumho Tire v. Carmichael (US Supr Ct)
Expert Testimony - Cases (NC)
- Howerton v. ARAI (NC Supr Ct)
- NC House Bill 542 (2011) (NC General Statutes)- effective 10-1-2011, this bill adopts Daubert principles regarding expert witness testimony in NC Courts, with potential implication for business valuation
Expert Witness Communications with Attorneys, Disclosures, Protection of Business Valuation Draft Reports
- Rule 26- Federal Rules of Civil Procedure (revisions effective December 1, 2010)
Fair Market Value vs. Strategic Value in Business Valuation
- Noble (US Tax Ct)
- Dunlop v. Commissioner (US Tax Ct)
Family Law Business Valuation Cases
Active Vs. Passive Changes in Value
Buy-Sell Agreements, Shareholder Agreements
- Weaver v. Weaver (NC App)
- Bersin v. Golonka (NC App)
Equitable Distribution
- North Carolina General Statute Excerpts (limited excerpts on valuation, valuation date, tax consequences, marital versus separate property, etc.)
Licenses, Educational Enhancement
Practice Goodwill
- Poore v. Poore (NC App)
- Bersin v. Golonka (NC App)
Subchapter S Corporation Valuation
- Bernier v. Bernier (MA Supr Ct) (Family Law)
Standard of Value in Business Valuations
- Hamby (NC App)
Stock Option Valuation Methods
- Fountain v. Fountain (NC App)
Subsequent Events- Improper Use of in Valuation (Time Travel)
- Christensen (NC Ct App)
Tax Impacts: Equitable Distribution
- Weaver v. Weaver (NC App)
- Wilkins v. Wilkins (NC App)
Family Limited Partnerships, LLCs and their Business Valuation, Business Valuation Discounts, Related Issues
Fractional Interests in Real Estate- Valuation methods and Discounts
- Est. of Amlie (US Tax Ct)
- Ludwick (US Tax Ct)
Intrinsic vs. Fair Market Value in Business Valuation
- Southern Railway (NC Supr Ct)
Key Person Issues in Business Valuation
- Furman (US Tax Ct)
- Martin Ice Cream (US Tax Ct)
Life Insurance and its Impact on Business Valuation
Low Dividends and Effect on Business Valuation of Minority Interests
- Barnes (US Tax Ct)
Marketability Discounts in Business Valuation
Marketability Discounts in Business Valuation- IRS Internal Documents
- Discount for Lack of Marketability- Job Aid for IRS Valuation Professionals (2009)
Minority Interests- Business Valuation
Need for Accredited Appraiser in Business Valuation
- Kohler (US Tax Ct)
Past Transactions as Evidence of Value- Business Valuation Impact
Personal versus Corporate Goodwill in Business Valuation
Poorly Supported Business Valuation
- Kaufman (US Ct App)
- Kohler (US Tax Ct)
Prearrangements Defeat Business Valuation Discounts
- Koblick (US Tax Ct)
Preferred Stock Business Valuation
- Trompeter (US Tax Ct)
Public Company Selection in Business Valuation
- Estate of Joyce V. Hall (US Tax Ct)
Reasonable Compensation
Redemption Price and Impact on Business Valuation
- Blount (11th Cir Ct App)
Restricted Stock Options- Business Valuation
- Littman (US Ct Fed Claims)
Revenue Rulings and Revenue Procedures on Business Valuation Issues (IRS)
Section 754 Election Impact on Business Valuation
- Estate of W.W. Jones (US Tax Ct)
Shareholder Disputes and Dissenting Shareholders- Business Valuation Issues
Cases (Delaware)
- Delaware Radiology Open MRI v. Kessler (DE Chanc Ct)
- Global GT LP et al v. Golden Telecom (DE Chanc Ct)- deals with cost of capital, discount, capitalization rates
Cases (NC)
Cases (SC)
Special Business Valuation Rules, Internal Revenue Code
- Chapter 14
Specific Company Risk Premium in Rate of Return Development in Business Valuation
- Sunbelt Beverage (DE Chanc Ct)
Subchapter S Corporation (and Operating LLC) Business Valuation Issues and Need to Consider Impact on Business Value
Tax Court S Corporation Business Valuation Controversy Begins:
- Gross (US Tax Ct) (1999)
- Gross (US Court of App) (2001)
Gross Case (or Similar Issues) Followed in Subsequent Business Valuation Cases:
a. Tax Court:
Some Courts Begin to Quantify S Corporation Benefits by Various Methods:
a. Delaware Chancery Court:
- DE Radiology Open MRI v. Kessler (DE Chanc Ct) (2006)
- Sunbelt Beverage (DE Chanc Ct (2010)
b. Family Law (Massachusetts):
- Bernier v. Bernier (MA Supr. Ct) (2007) (Family Law)
Moving Closer to Resolution of the S Corp. Issue?:
a. Tax Court:
- Kress v. United States of America (U.S. E.D. Wisconsin, 3-25-19)
- Jones (US Tax Ct) (T.C. Memo. 2019-101, 8-19-19)
Time Travel in Business Valuation (Using Information on Subsequent Events Past the Valuation Date)
Valuation Report Content and Related Requirements for Business Valuations for Tax Purposes
- IRS Adequate Disclosure Requirements (gifts)
- IRS Valuation Report Standards and Requirements
Voting, Non-Voting Business Valuation
- Simplot (US Tax Ct)
- Simplot (US Ct App)

*Disclaimer: Inclusion of these business valuation and related cases, rulings and other items on this site does not constitute advice to be applied to any specific situation. No business valuation, tax, legal, financial, investment or any other advice or opinion of any kind is provided herein. Consult qualified, legal, accounting, tax, financial, business valuation and other advisors as are appropriate in dealing with a specific matter. Cases, IRS rulings, and valuation methodologies can change materially over time and may no longer be valid. Furthermore, all cases involved specific facts and circumstances and may not be applicable to other facts and circumstances, purposes, jurisdictions, etc. In addition, the cases listed are not necessarily all cases or rulings on an issue and may not be the most current or inclusive of all appeals. Finally, just because we have a case, ruling or other item here does not mean Banister Financial or its professionals necessarily agree with it! By downloading, reading or otherwise accessing any of the items on this page or any of the information on our website overall you agree to our Terms and Conditions of Use.

Banister Financial, Inc.

1338 Harding Place, Suite 200
Charlotte, North Carolina 28204
Phone: (704) 334-4932