July / August
Showing 321–336 of 616 results
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The cost approach: An integral piece of the valuation puzzle
July / August 2014
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 444
Abstract: Numerous articles have been written about the nuances of the income and market approaches. But the cost approach can also be a viable valuation technique. The concept underlying the cost (or asset-based) approach is that the value of a business equals the difference between the values of its assets and liabilities. This article offers a closer look at how it works. Richard Scott Starling v. Teresa Ann Morehead Starling (Va. Ct. of Appeals, Record No. 0589-13-3, Sept. 10, 2013)
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Are shareholder advances bona fide debt or equity?
July / August 2014
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 637
Abstract: Closely held business owners sometimes need to advance their companies money to bridge a temporary downturn or provide extra cash flow for other purposes. How should valuators categorize those advances — as bona fide debt, additional paid-in capital or somewhere in between? The answer depends on the facts and circumstances of each assignment. This article explains how advances affect value and how to classify them.
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Choosing between lost profits and lost value
July / August 2014
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 652
Abstract: How do valuators quantify losses when breach of contract, patent infringement or other illegal acts damage a business? Three options exist: Calculate lost profits over a finite period, compute the decrease in business value or use a combination of both. What’s appropriate depends on various factors, including relevant laws and the nature of the alleged wrongdoing. This article examines the specifics.
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Holding companies with built-in capital gains – Tax Court case addresses key valuation issues
July / August 2014
Newsletter: Viewpoint on Value
Price: $225.00, Subscriber Price: $157.50
Word count: 902
Abstract: The Tax Court recently addressed a case in which the IRS and taxpayer started out more than $6.1 million apart. But this article explains how the court slowly worked through the major sticking points — including how to select the appropriate valuation methodology and how to handle the company’s built-in capital gains tax liability — to arrive at a value substantially higher than was originally indicated on the estate tax return. A sidebar discusses how hiring a “qualified appraiser” to perform a “qualified appraisal” can help taxpayers prove that they qualify for the IRS’s exception to its valuation misstatement penalties. Estate of Helen P. Richmond (T.C. Memo. 2014-26)
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ITT Corp. v. Xylem Group, LLC – When are hypothetical royalty damages reasonable?
July / August 2014
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 428
Abstract: This brief case study focuses on a recent decision in ITT Corp. v. Xylem Group, LLC, where the court concluded that reasonable royalty damages are available to plaintiffs in trademark infringement cases. It rejected the argument that these damages are available only to plaintiffs that can show an established royalty rate based on an actual license agreement. ITT Corp. v. Xylem Group, LLC, No. 1:11-cv-03669-WSD (N.D. Ga. 08/05/2013)
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Back to the future – Use cash flow projections to forecast future economic benefits
July / August 2014
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 693
Abstract: Experienced business owners know that profits mean nothing if there’s not enough cash left over to pay their salaries and dividends. Cash flow projections can help owners understand the value of the business, manage cash flow more efficiently and survive monthly cash crunches. This article explains how valuators estimate projected cash flow, pointing out that this valuation expertise makes them uniquely suited to help management increase efficiency and profitability.
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Multilevel valuation discounts: Handle with care
July / August 2014
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 522
Abstract: Estate planners may use family limited partnerships (FLPs) and family limited liability companies (FLLCs) to consolidate a family’s wealth management, protect assets, and reduce gift and estate taxes. The reductions are made by subtracting lack of control and marketability discounts from the net asset value of the entity’s holdings. This article notes that, in some cases, multilevel discounts are available for tiered entities and uses a hypothetical example to illustrate how a multilevel discount might work. Estate of Astleford v. Commissioner (T.C. Memo 2008-128) Estate of O’Connell v. Commissioner (T.C. Memo 1978-91)
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Dividing retirement benefits in divorce
July / August 2014
Newsletter: Valuation & Litigation Briefing / Litigation & Valuation Report
Price: $225.00, Subscriber Price: $157.50
Word count: 895
Abstract: Often, when married couples divorce, retirement plans are among their largest assets. Valuing and dividing these assets can be a challenge, especially when one spouse began participating in the plan before marriage. This article explains how a financial expert with valuation and forensic accounting experience can assist divorcing couples in valuing retirement plan assets and determining the extent to which contributions, earnings, distributions and loans constitute separate or marital property.
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Tax Tips – IRA rollovers: Handle with care
July / August 2014
Newsletter: Tax Impact
Price: $225.00, Subscriber Price: $157.50
Word count: 428
Abstract: In this issue, “Tax Tips” looks at a recent Tax Court determination that the “one-rollover-per-year” limit for IRAs applies on an aggregate basis, as opposed to the “one-per-IRA-per-year” interpretation that the IRS has been following. Also discussed is a case in which the U.S. Supreme Court ruled that severance payments to involuntarily terminated employees were taxable wages for FICA purposes. Finally, it’s noted that the IRS has recently clarified the tax treatment of virtual currency.
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Buying or selling a business? Here’s what you need to know to get the best deal
July / August 2014
Newsletter: Tax Impact
Price: $225.00, Subscriber Price: $157.50
Word count: 590
Abstract: Buying or selling a company can be a good move in the right circumstances, but it’s essential to know what’s involved. It’s necessary to research a number of business and financial issues as well as certain legal matters. And, of course, there are numerous tax issues that simply can’t be ignored. This article looks at determining a business structure and allocating the purchase price.
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How to make the most of life insurance
July / August 2014
Newsletter: Tax Impact
Price: $225.00, Subscriber Price: $157.50
Word count: 604
Abstract: Contrary to popular belief, life insurance isn’t always tax-free. But, with careful planning, it’s possible to avoid or minimize negative tax consequences and maximize the amount available for one’s family. This article discusses a couple of ways to get the most out of life insurance: 1) transferring a self-owned policy to an irrevocable life insurance trust (ILIT) and 2) avoiding the “transfer-for-value” rule.
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It’s time for midyear tax planning – Timely tips to help keep your tax bill low
July / August 2014
Newsletter: Tax Impact
Price: $225.00, Subscriber Price: $157.50
Word count: 866
Abstract: Tax-saving strategies take time to implement, so it’s important to not wait until the end of the year. This article offers several midyear strategies for individuals to consider. These include reducing taxable income, modified adjusted gross income (MAGI), and/or net investment income; contributing to retirement plans; and planning for medical expenses. A sidebar notes that it’s possible to avoid or reduce underpayment penalties by increasing income tax withholding.
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Ask the Advisor – How should I assume the seller’s loan?
July / August 2014
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 428
Abstract: The real estate market appears to be on the rebound, but sometimes it seems as if creditors haven’t caught on to that. With the credit market still somewhat stingy, potential buyers may want to consider assuming their sellers’ loans. Not surprisingly, this approach comes with pros and cons. This article describes how it works.
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Take your pick – There’s more than one way to execute a Sec. 1031 exchange
July / August 2014
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 693
Abstract: Section 1031 exchanges have been around for quite some time. They offer participants a way to dispose of property and subsequently acquire one or more other “like-kind” replacement properties as part of a nonrecognition transaction. The simplest type of exchange is a simultaneous swap of one property for another. Deferred exchanges are more complex but allow for additional flexibility. This article explains how they work.
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IRS provides relief for mezzanine financing workouts
July / August 2014
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 519
Abstract: The IRS has issued new guidance that will, in certain circumstances, exclude from gross income any discharged debt that’s secured by the ownership interest in a disregarded entity. Revenue Procedure 2014-20 should help taxpayers with mezzanine financing in workouts and similar arrangements. This article takes a look at how the issue arises and how to qualify for the exclusion.
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Understanding rehabilitation tax credits – What you need to know about partnership allocations
July / August 2014
Newsletter: Real Estate Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 896
Abstract: In late 2013, the IRS released Revenue Procedure 2014-12, which established a safe harbor clarifying how the agency will treat allocations of rehabilitation tax credits among partners. The procedure lays out circumstances under which the IRS won’t challenge a partnership’s allocation of credits to an investor/partner. This article discusses eligibility requirements for the safe harbor. However, a sidebar explains that it isn’t available if anyone in the rehabilitation project has entered into certain guarantee or insurance arrangements to protect the investor’s minimum contribution against losses.