Upside Down in 2011Upside Down in 2011
When Superman was trapped in Bizarro World, he found everything was the opposite of its earthly counterpart. Or, as Jerry Seinfeld observed, for an inhabitant of Bizarro World, Up is down, down is up, he says when he leaves, when he arrives.1 Several long-standing valuation issues were subject to a type of up is down treatment in 2011. Tax-affecting S Corporation Earnings The Tax Court continues to
Radd L. Riebe
When Superman was trapped in “Bizarro World,” he found everything was the opposite of its earthly counterpart. Or, as Jerry Seinfeld observed, for an inhabitant of Bizarro World, “Up is down, down is up, he says ‘hello’ when he leaves, ‘goodbye’ when he arrives.”1 Several long-standing valuation issues were subject to a type of “up is down” treatment in 2011.
Tax-affecting S Corporation Earnings
The Tax Court continues to say “no” to tax-affecting the value of S corporation earnings (that is, discounting the value of those earnings on the basis of assumed future tax burdens imposed on them) and the valuation community just as persistently says “yes” to tax-affecting the earnings. This conflict in approaches has existed for mor...
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