Chancery’s DCF Upends Appraisal Arbitrage Strategy

December 3, 2018 | Court Rulings, Valuations

In re Appraisal of SWS Group, Inc. Only days after deferring to the merger price in the PetSmart case, the Delaware Court of Chancery opted for the discounted cash flow analysis in the instant appraisal proceeding. This case, which featured a bank holding company, presented a challenge of how to account for the target’s excess  Continue Reading »

Proposed Regs Would Expand Health Reimbursement Arrangements

November 26, 2018 | IRS Regulation

Three federal agencies—the IRS, the Department of Labor, and the Department of Health and Human Services—have issued proposed regulations that would let employers fund tax-exempted health reimbursement arrangements in order to help pay for employees’ individual health insurance premiums. A health reimbursement arrangement (HRA) is an arrangement funded by an employer that is set up  Continue Reading »

Appreciation Case Highlights Contribution by Non-Owner Spouse

November 19, 2018 | Court Rulings, Divorce Litigation, Valuations

Allison v. Allison A Michigan divorce case that centered on the non-owner spouse’s right to the appreciation in value of allegedly separate property is informative as it shows what factors the court considers for its active/passive analysis. However, the size of the award to the non-owner spouse also suggests that the court, in the end,  Continue Reading »

7 Year-End Tax Planning Moves for Small Businesses

November 12, 2018 | Financial Planning, Tax Planning

  There is still time for business owners in Maine and elsewhere to significantly reduce their tax bills for 2018. Taking the changes included in the Tax Cuts and Jobs Act (ACJA), here are seven year-end moves to consider: 1. Claim 100% Bonus Depreciation for Asset Additions Thanks to the TCJA, first-year bonus depreciation of  Continue Reading »

Expert’s Damages Opinion Specific Enough for Class Certification Stage

November 5, 2018 | Court Rulings, Valuations

Willis v. Big Lots, Inc. In what is becoming a common practice, the defendants in a potential securities class action filed a Daubert challenge to exclude financial expert testimony at the class certification stage. Although courts are divided whether Daubert should apply at this early stage in the litigation, the court here considered the motion.  Continue Reading »

Create an Accountable Plan to Reimburse Employees for Business Expenses

October 29, 2018 | IRS Regulation

One of the changes in the Tax Cuts and Jobs Act (TCJA) was to eliminate itemized deductions for employees who incur unreimbursed expenses for company business for 2018 through 2025. To minimize the adverse effects of this TCJA, you can set up a so-called “accountable plan.” Here’s how the accountable plan deal works and why  Continue Reading »

Tax Court’s Valuation of Trust’s Interest in LLC Weathers Appeal

October 22, 2018 | Court Rulings, Valuations

Estate of Koons v. Commissioner (Koons II), The 11th Circuit Court of Appeals upheld a 2013 Tax Court ruling involving a revocable trust’s interest in a limited partnership. The valuation turned on the marketability discount. The 11th Circuit opinion shows the Tax Court’s decision regarding expert testimony was less focused on valuation methodology than on  Continue Reading »

Tax Reform: Which Changes Are Temporary vs. Permanent?

October 15, 2018 | Exemptions, IRS Regulation, Tax Planning

There are a number of important tax changes for individuals and businesses in the Tax Cuts and Jobs Act (TCJA). It can be hard to keep track of which changes are permanent and which are scheduled to expire at the end of 2025 without Congress extending them. Here is a cheat sheet of which changes  Continue Reading »

Proxy Gave ‘Fair’ Summary of Valuation Work, Chancery Says

October 10, 2018 | Court Rulings, Valuations

In re Merge Healthcare Inc., Stockholders Litig. Several decisions in the Delaware Court of Chancery have focused on the use of the business judgment rule to defeat breach of fiduciary duty claims. Under the rule, the court does not second-guess a deal where a majority of disinterested, informed shareholders approved the transaction. In the most  Continue Reading »

Employers: Consider Telemedicine and Make Sure Employees Use It

October 3, 2018 | Uncategorized

The ways medical professionals and patients interact continues to change thanks to telemedicine. Your Maine-based company may already have telemedicine available, and it’s a benefit to both you and your employees. Nearly three-quarters of employers with at least 500 workers said they make telemedicine services available, according to a survey by the Mercer consulting firm.  Continue Reading »