Ensuring a Peaceful Succession With a Buy-Sell Agreement

William P. Allen, CPA/ABV, CFE

A wave of consolidation in the music publishing sector. Several multimillion-dollar music portfolios are reportedly up for sale. But are they asking too much to attract serious buyers? When it comes to valuing intellectual property assets, experts don't rely on gut instinct. Here's an overview of tried-and-true methods used to value copyright portfolios and other types of intellectual property. 

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Timely Expert Reports Are Critical to Discovery

Louis J. Cercone, CPA, CFE, CFF, ABV, ASA, CVA

Assets transferred to a limited partnership in an effort to remove them from an estate were, in fact, included in the value of that estate, the U.S. Tax Court ruled in one case. The reason: The deceased woman retained her rights related to the assets until her death and the transfer was made less than three years before her death.

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Music Industry Illustrates How to Value Intellectual Property

William P. Allen, CPA/ABV, CFE

A wave of consolidation in the music publishing sector. Several multimillion-dollar music portfolios are reportedly up for sale. But are they asking too much to attract serious buyers? When it comes to valuing intellectual property assets, experts don't rely on gut instinct. Here's an overview of tried-and-true methods used to value copyright portfolios and other types of intellectual property. 

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Transfer to Limited Partnership Is Includable in Estate

Louis J. Cercone, CPA, CFE, CFF, ABV, ASA, CVA

Assets transferred to a limited partnership in an effort to remove them from an estate were, in fact, included in the value of that estate, the U.S. Tax Court ruled in one case. The reason: The deceased woman retained her rights related to the assets until her death and the transfer was made less than three years before her death.

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Washington State Appeals Court Addresses Double-Dipping

William P. Allen, CPA/ABV, CFE

"Double-dipping" is a presumed inequity that sometimes occurs in divorce cases. It happens when a family court considers a spouse's income in valuing a business interest that's part of the marital estate and, again, in determining spousal maintenance payments. Here's a recent appellate court decision that distinguishes the husband's viable going concern entity from case law involving "diminishing" assets.

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Stallone Fights Studio’s Accounting Methods

Louis J. Cercone, CPA, CFE, CFF, ABV, ASA, CVA

Contracts that include contingent consideration can lead to disputes regarding key definitions, as well as the amount and timing of payouts. Here are the details of a high-profile accounting dispute that started more than two decades ago between Sylvester Stallone's production company and a major movie studio involving the 1993 movie Demolition Man.

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A Written Report Can Validate an Experts Method

Douglas P. Sosnowski, CPA/ABV, ASA, CFF

Expert witness testimony can sometimes make or break a case. But if your financial expert is unable to survive a Daubert challenge, the court may not be presented with critical evidence that could otherwise help prove (or dispute) damages or value. A recent federal district court case shows how a comprehensive written report can demonstrate that experts used proven financial theories and techniques to arrive at their conclusion.

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Business Structure

View the Business Structure chart which shows the "Income tax differences based on business structure" to compare the tax treatment for pass-through entities vs. C corporations.

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Measure Owners’ Compensation With the Independent Investor Test

Douglas P. Sosnowski, CPA/ABV, ASA, CFF

The U.S. Tax Court recently addressed the issue of reasonable compensation. This is a subjective matter that is closely related to replacement compensation for shareholder disputes and divorce cases. Here, we list five factors to consider when determining reasonable compensation and explain how experts use the independent investor test to support their positions with objective market evidence. The independent investor test can also be used to determine replacement compensation.

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