A New York court dismissed a wife’s attempt to invalidate a divorce settlement which was reached while the business owner was simultaneously negotiating the sale of the company. From the Family Law Prof Blog: Wife...
Locked-Out Spouse Finds No Sympathy at IRS
October 21, 2006
The TaxProf Blog reported an interesting story about a husband who failed to report his share of passthrough income from the medical billing company that he and his estranged wife owned together. The Tax Court was not...
More Personal Goodwill – Baker
October 20, 2006
In Baker v. Baker (2004), a predecessor to the Smith case reported previously in this blog, the Superior Court considered the intangible goodwill value of a veterinary practice located in rural Lycoming County. The husband,...
S Corporations: A Taxing Question (Part I)
October 15, 2006
A hot topic confronting the valuation community these days is whether to discount the earnings or cash flows of a Subchapter “S” corporation by subtracting the shareholder-level income taxes before capitalizing...
Quantifying Personal Goodwill – Smith v. Smith
October 15, 2006
In Smith v. Smith, the Pennsylvania Superior Court ventured into the murky waters of goodwill, an intangible element of business value. Goodwill may be derived from the positive reputation of a business, its location, and its...