![A Busy Year for Valuation Decisions A Busy Year for Valuation Decisions](https://eu-images.contentstack.com/v3/assets/bltabaa95ef14172c61/blt54d3b1688a4de688/6733e308c6a8216217bcf167/meinhart-promo.jpg?width=1280&auto=webp&quality=95&format=jpg&disable=upscale)
The U.S. Tax Court and U.S. Court of Appeals decided several interesting cases in 2014. Here’s a rundown of three significant decisions and what they mean for clients facing valuation issues.
C Corporation Holding Company
In Estate of Helen P. Richmond v. Commissioner,1 the Tax Court addressed: (1) the appropriateness of using the income approach for a holding company valuation, (2) the economic impact of a contingent tax liability for built-in capital gains, and (3) the application of a substantial valuation understatement penalty for not hiring a certified appraiser.
Helen Richmond died in December 2005 owning 23.44 percent of the outstanding shares of Pearson Holding Co. (PHC), a C corporation. PHC was formed in 1928 to manage a portfo...
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