Editorial Type:
Article Category: Research Article
| Online Publication Date: 01 Jan 2013
To Tax or Not to Tax That Is the Question: The S Corporation Valuation Controversy
To Tax or Not to Tax That Is the Question: The S Corporation Valuation Controversy
ASA and
CPA, CVA
Page Range: 67 – 76
The valuation of S corporations has been a hotly debated topic in the valuation community ever since the Gross case opened a Pandora's Box by disallowing tax affecting of an S corporation's earnings stream. This article examines a variety of positions taken on both sides of the argument and discusses issues that analysts should consider when valuing S corporations.
Copyright: © 2002 American Society of Appraisers
Contributor Notes
Mr. Schlueter is the co-founder of ComStock Valuation Advisors, Inc. a business valuation firm with offices in Cincinnati, Chicago, Columbus and Minneapolis.
Ms. Morris is a Research Analyst at ComStock's Cincinnati office.