Litman AudacityLitman Audacity
We could chalk it up to the luck of the draw or extraordinary skill in the courtroom. Either way, the victory by the taxpayers David Litman and Robert Diener in Litman v. United States1 on Aug. 22, 2007, was certainly one for the record books. Illiquidity discounts up to 50 percent are rare in tax cases, yet that's what they managed to achieve. And the securities to be discounted were not even privately
Espen Robak, president, Pluris Valuation Advisors LLC., New York
We could chalk it up to the luck of the draw or extraordinary skill in the courtroom. Either way, the victory by the taxpayers David Litman and Robert Diener in Litman v. United States1 on Aug. 22, 2007, was certainly one for the record books. Illiquidity discounts up to 50 percent are rare in tax cases, yet that's what they managed to achieve. And the securities to be discounted were not even privately held; rather they were shares of a large, profitable publicly traded firm — just the type that normally don't enjoy large discounts. Still, Litman is notable not only for this huge discount, but also for how the valuation arguments and methods employed by the parties are repr...
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