Tag: discounts

Discounts in Art: “Starving Artist” Prices?

April 02, 2009 | Blog, Business Valuation, Court Decisions

Icon for author Brian Vertz Brian Vertz

The 9th Circuit Court of Appeals recently issued a decision (highlighted by Carsten Hoffman’s FMVOpinions)¬†affirming a tiny fractional interest discount applied to a jointly-owned collection of paintings. In Stone vs. U.S. (2009), the district court rejected the opinion of the estate’s expert, who testified in favor of a 44% fractional interest discount, citing the expert’s “total lack of experience with the art market; the dissimilar motives driving purchasers to acquire […]

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Standard of Value dictates Use of Discounts in Divorce Case

February 25, 2009 | Blog, Business Valuation, Court Decisions, Divorce

Icon for author Brian Vertz Brian Vertz

The Alabama Court of Appeals recently issued an opinion in Grelier v. Grelier, holding that the parties’ agreement to employ the fair market value standard in a divorce case precluded wife from arguing on appeal that the trial court should not have applied marketability and minority discounts. In Grelier, the parties appointed a neutral expert to determine the value of the husband’s business, a retail and commercial real estate development […]

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Jelke and BIG Tax Liability

July 21, 2008 | Blog, Business Valuation

Icon for author Brian Vertz Brian Vertz

Chris Mercer’s Value Matters newsletter offered a succinct summary of the Eleventh Circuit’s recent decision in Jelke v. Com., an important decision dealing with built-in capital gains (BIG) tax liability of Subchapter C corporations. The subject company in the case was a C corporation established 80 years ago, whose principal asset was an investment portfolio managed for long-term capital growth. The company was valued for estate tax purposes, and the […]

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