Quantifying Economic Damages: A Federal Case Study

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

Does a business need to be completely destroyed to recoup economic damages incurred in a business tort claim? A recent federal court ruling awarded a plaintiff damages based on the value of the business prior to the defendants' alleged wrongdoing — even though the business continued to operate.

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Timing Counts When Classifying Property in Divorce

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

Business interests acquired and nurtured during marriage are generally classified as marital property in most jurisdictions. But what if a couple owns a business that's sold prior to settling their divorce and the sale includes "earnout" payments that are contingent on future performance? Minnesota's Supreme Court addressed this issue in a recent high-profile case. 

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Are Court Awards and Settlement Proceeds Taxable?

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

When you receive an out-of-court settlement or court-ordered award, you might not know how to classify it for federal income tax purposes. Don't assume it will be tax-free without discussing matters with a tax professional. The rules are complex and taxpayers bear the burden of proving that an amount should be excluded from gross income.

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