2013
Showing 33–48 of 735 results
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Picking the “right” standard of value in divorce
November / December 2013
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 412
Abstract: In divorce cases that include a private business, the attorney and client need to know how much the interest is worth to equitably distribute marital assets. But a universal standard of value that applies in all divorce cases doesn’t exist. This brief article discusses the most common standards of value in divorce — fair market value and fair value — and notes the differences between the two. The article also stresses the importance of engaging a valuator who is familiar with both relevant state divorce statutes and case law in the particular jurisdiction in order to minimize valuation-related complications.
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It’s only reasonable – 5 factors to help determine reasonable compensation
November / December 2013
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 570
Abstract: The question of reasonable compensation is frequently debated in shareholder disputes, divorces and IRS inquiries. Owners’ compensation can vary significantly from company to company based on many factors, such as the owner’s education, licenses, training and salary history; the business’s size; and industry trends. This article explains five factors courts use to determine whether an owner-employee’s compensation is reasonable. Typically, a determination of reasonable compensation is objective, unbiased and based on relevant empirical data.
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DCF method is only as good as what lies beneath
November / December 2013
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 659
Abstract: This article uses a 2012 case, In re Bachrach Clothing, to illustrate that the discounted cash flow (DCF) method is only as reliable as its underlying assumptions — and the objectivity of the experts performing the analyses. The article describes the background of this case and looks at the discrepancies between the two experts’ approaches. The experts both relied on the same cash flow projections and used the DCF method — but reached radically different conclusions. The article notes the importance of supporting valuation assumptions with objective, market-derived evidence to reach a well-reasoned valuation conclusion that can withstand court scrutiny. In re Bachrach Clothing (Bankruptcy No. 0655, Adversary No. 08-00726, U.S. Bankruptcy Court for the Northern Division, Oct. 10, 2013).
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Cross-examining a valuator: Where do I start?
November / December 2013
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 902
Abstract: Effective cross-examination of a valuation expert takes patience, skill and planning. This article suggests several key questions that can help an attorney probe, and possibly cast doubt, on an opposing expert’s testimony. The article elaborates on areas that may shed light on the opposing expert’s areas of weakness, including his or her qualifications, objectivity, methods and approaches, adjustments, and discounts. The article points out that attorneys who take the time to gain a general understanding of valuation techniques and issues are more successful in cross-examination.
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Federal discovery: Big proposed changes on the horizon
November / December 2013
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 328
Abstract: Proposed amendments to the Federal Rules of Civil Procedure will, if enacted, have a significant impact on discovery in the federal courts. As this article explains, they would rein in the “kitchen sink” approach to discovery that’s commonly used today, under which virtually any nonprivileged evidence is discoverable. Instead, they would replace this standard with one that permits and encourages responsible use of discovery that’s “proportional to the reasonable needs of the case.”
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Bringing up baby – Make sure your valuator understands upstarts
November / December 2013
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 615
Abstract: In spite of the sagging economy in parts of the United States, many ambitious entrepreneurs are still in the business of starting up new companies. The trick is: How do these entrepreneurs value their upstarts? Companies that have been in business a long time have years of data behind them to help establish a sound valuation. But it’s quite a different story when it comes to newer ventures. This article discusses the factors that valuators look at to estimate a startup’s future performance and to gauge the level of risk involved.
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Beware of risky litigation strategies
November / December 2013
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 714
Abstract: This article discusses two recent patent infringement cases involving damages strategies that backfired. In one, the plaintiff prevailed because it not only had a strong history of preinfringement sales, but also because its outside expert presented an analysis that was “based on sound economic proof confirmed by the historical record.” In the other case, the plaintiff prevailed on liability, but the defendant’s motion for summary judgment on damages was granted because the plaintiff had failed to offer expert testimony in support of its reasonable royalty calculations. Both cases highlight the need to engage qualified valuators when heading into court.
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Handle with care – Make sure buy-sell valuation provisions are clear
November / December 2013
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 861
Abstract: Perhaps the most critical aspect of a buy-sell agreement is its valuation provision. Any ambiguity in the agreement’s pricing terms — or misunderstandings about what they mean — can lead to unpleasant surprises when the buy-sell agreement is triggered. This article describes three common approaches to setting a price, along with the importance of choosing terminology carefully. A sidebar illustrates the dangers of relying on book value to set a buyout price in a buy-sell agreement.
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Tax Tips – Watch out for unscrupulous payroll providers
November / December 2013
Newsletter: Tax Impact
Price: $225.00, Subscriber Price: $157.50
Word count: 413
Abstract: This issue’s “Tax Tips” notes why it’s necessary to watch out for payroll providers who may be unscrupulous. It looks at recent IRS clarification regarding meal and entertainment deductions, explaining which party, in the context of an employer-employee or customer–independent contractor relationship, will be subject to a 50% limitation on the deduction. And it discusses a Tax Court case involving dependency exemptions — a case that demonstrates the importance of filing the relevant forms with the IRS.
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Don’t stop giving – Lifetime gifts remain a smart estate planning strategy
November / December 2013
Newsletter: Tax Impact
Price: $225.00, Subscriber Price: $157.50
Word count: 641
Abstract: Lawmakers may have made high gift and estate tax exemptions “permanent,” but this simply means that no expiration date has been set. Congress could still reduce the exemptions down the road. But, in any event, and regardless of one’s net worth, gifting continues to offer several tax benefits and can provide some insurance against future tax law changes. This article describes how a lifetime gifting program can be beneficial not only in regard to gift and estate taxes, but income taxes as well.
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The AMT: Treacherous waters are waiting to trap you
November / December 2013
Newsletter: Tax Impact
Price: $225.00, Subscriber Price: $157.50
Word count: 640
Abstract: For years, Congress repeatedly went through the motions of temporarily patching the alternative minimum tax (AMT), with the goal of limiting the number of taxpayers who were liable to pay it. At the beginning of 2013, they made the AMT patch permanent. But even with it, many taxpayers will fall into the AMT “trap.” This article examines how the AMT works, who might be vulnerable to it, and how to plan for it so as to avoid or minimize its impact.
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Making the right entity choice in today’s tax environment
November / December 2013
Newsletter: Tax Impact
Price: $225.00, Subscriber Price: $157.50
Word count: 859
Abstract: From a tax perspective, pass-through structures — such as limited liability companies (LLCs), S corporations and partnerships — have been the preferred business entity choice in recent years. But increases in individual income tax rates have made the decision whether to convert to a C corporation a closer call. And if lawmakers reduce the federal corporate tax rate, C corporations may become more attractive. This article discusses the recent tax law changes and their effect on the tax efficiency of C corporations, while a sidebar looks at the advantages of S corporations.
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Ask the Advisor – Is a reverse exchange right for me?
November / December 2013
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 400
Abstract: Real estate investors interested in enjoying the tax benefits of a like-kind exchange may consider a “reverse exchange” — where the replacement property is acquired before the investor transfers the relinquished property. These transactions come with certain advantages and disadvantages, however. This article looks at two versions of reverse exchanges and their pros and cons.
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A budding valuation consideration – Explore the world of green building features
November / December 2013
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 629
Abstract: With sustainability becoming more common in both residential and commercial real estate, appraisers are increasingly asked to weigh in on buildings with green features. While green valuations haven’t yet come fully into bloom, the seeds have clearly been planted for environment-related features to affect property value. This article discusses why green matters, and lists factors that valuators can consider when appraising residential properties with green features.
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Stop and think before you surrender property
November / December 2013
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 616
Abstract: Although much of the nation has seen an uptick in home sales, there are still areas in the United States that are dealing with sluggish markets. Those folks may be better off if they surrender their properties rather than try to satisfy their loan obligations. But they need to be careful. Why? Because, as this article indicates, discharging that debt may lead to unwelcome consequences.
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Tax Court finds property owner wasn’t a “real estate professional”
November / December 2013
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 909
Abstract: A property owner who qualifies as a “real estate professional” stands to reap more tax benefits than ever these days. Those who satisfy the requirements may be able to offset some nonrental income with rental losses, as well as avoid the new 3.8% Medicare tax on net investment income. Satisfying the requirements, though, is no small task. This article looks at a court case in which the owner and manager of rental units recently learned that lesson the hard way. A sidebar discusses the tax penalty he had to pay.