Produktbild: Valuing Pass-Through Entities

Valuing Pass-Through Entities

Aus der Reihe Wiley Finance Editions

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Beschreibung

Produktdetails

Einband

Gebundene Ausgabe

Erscheinungsdatum

20.10.2014

Verlag

John Wiley & Sons

Seitenzahl

272

Maße (L/B/H)

22.9/15.7/3 cm

Gewicht

499 g

Auflage

1. Auflage

Sprache

Englisch

ISBN

978-1-118-84866-1

Beschreibung

Produktdetails

Einband

Gebundene Ausgabe

Erscheinungsdatum

20.10.2014

Verlag

John Wiley & Sons

Seitenzahl

272

Maße (L/B/H)

22.9/15.7/3 cm

Gewicht

499 g

Auflage

1. Auflage

Sprache

Englisch

ISBN

978-1-118-84866-1

Herstelleradresse

Libri GmbH
Europaallee 1
36244 Bad Hersfeld
DE

Email: gpsr@libri.de

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  • Produktbild: Valuing Pass-Through Entities
  • Foreword xi

    Preface xiii

    Acknowledgments xv

    About the Author xvii

    CHAPTER 1 Introduction 1

    Definition of Value 2

    Beauty and Value 2

    Premise of Value 4

    Approaches to Value 5

    The PTE Conundrum 7

    CHAPTER 2 The History of Federal Statutory Tax Rates in Maximum Income Brackets and the Evolution of Different Forms of Business Entities 11

    Origins of the United States Internal Revenue Code 13

    Years 1913 Through 1938 14

    Years 1939 Through 1953 19

    Years 1954 Through 1985 22

    S Corporations 23

    Tax on Unreasonable Compensation 27

    General Utilities Doctrine 28

    Years 1986 Through 2013 29

    Limited Liability Companies 30

    Summary 32

    CHAPTER 3 Effective Federal Individual and Corporation Income Tax Rates 41

    Effective Federal Income Taxes on $10,000 of 2012 CPI Adjusted Taxable Income, 1913-2013 42

    Effective Federal Income Taxes on $100,000 of 2012 CPI Adjusted Taxable Income, 1913-2013 51

    Effective Federal Income Taxes on $1 Million of 2012 CPI Adjusted Taxable Income, 1913-2013 57

    Summary 67

    CHAPTER 4 Comparison of Different Entity Forms 71

    Business Life Cycle 71

    Benefits and Limitations of PTEs 75

    Financial Statements of C Corporations and PTEs 76

    PTE Status and Bank Financing 78

    Prevalence of PTEs 79

    Change in Form of Entity 81

    CHAPTER 5 Income Approach and Value to the Holder 85

    Value to the Holder versus Value to the Buyer 86

    Jurisdictional Issues 87

    Delaware Open MRI Radiology Associates, P.A. v. Howard B. Kessler 87

    Bernier v. Bernier 92

    Limitations of Delaware Open MRI and Bernier 93

    The Modified Delaware MRI Model 94

    Flexibility of the MDMM 98

    CHAPTER 6 Inputs to Modified Delaware MRI Model 101

    Normalized Pretax Income 101

    Entity-Level Income Taxes on Pass-Through Earnings 103

    Income Retained in the Business 104

    Effective Federal and State Income Tax Rates on Pass-Through Income 107

    Dividend Tax Rates 111

    Summary 121

    CHAPTER 7 Income Approach and Investment Value 123

    Measuring Investment Value 124

    Deal Structure 126

    CHAPTER 8 Income Approach and Fair Market Value 131

    Characteristics of FMV 131

    Determining FMV 134

    Example of Failing to Consider Floor and Ceiling Values 135

    CHAPTER 9 Fair Market Value Court Decisions 139

    Number of Federal Estate and Gift Tax Returns 140

    Gross v. Commissioner 141

    Estate of Heck v. Commissioner 145

    Wall v. Commissioner 146

    Estate of Adams v. Commissioner 149

    Robert Dallas v. Commissioner 151

    Gallagher v. Commissioner 153

    Analysis of Cases 154

    CHAPTER 10 The Market Approach 157

    Revenue Ruling 59-60 157

    Appraisal Standards Board Standards 159

    AICPA Statement on Standards for Valuation Services 160

    Guideline Public Company Method 161

    Guideline Public Company Method and PTE Value to the Holder 163

    Guideline Public Company Method and PTE Investment Value 168

    Guideline Public Company Method and PTE Fair Market Value 169

    Guideline TransactionsMethod 171

    CHAPTER 11 Individual State Income Taxes 175

    Statutory Individual State Income Tax Rates 175

    Effective Individual State Income Tax Rates 176

    CHAPTER 12 Discounts, Premiums, Bylaws, and State Laws 181

    PTE Agreements 181

    State Law 183

    Nevada Senate Bill 350 183

    CHAPTER 13 Valuing Complex PTE Ownership Interests 187

    Reasons for Complex Capital Structures 187

    Option-Pricing Method 188

    Example 1: Preferred-Member Units 190

    Example 2: Joint Venture 193

    Example 3: S Corporation with Unreasonable Officer/Stockholder Compensation 196

    Appendix A: Checklist 199

    Appendix B: Case Study: Bob's Cruises 215