Raley v. Brinkman – Should pass-through earnings be tax affected?
Abstract: The Tennessee Court of Appeals recently weighed in on the ongoing debate over whether a pass-through entity’s projected future income should be reduced for hypothetical corporate income taxes when valuing the business. This article explains why the court found that so-called “tax affecting” was appropriate in this buyout case. Raley v. Brinkman, No. 2018-02002 (Tenn. App., July 30, 2020). Delaware Open MRI Radiology Associates v. Kessler, 898 A.2d 290 (Del. Ct. Ch., 2006). Estate of Jones, TC Memo 2019-101, August 19, 2019.