- 23 -
2. Analyses of Petitioner’s Experts
a. General Approach
Both Mr. Dankoff and Mr. Stryker start with a benchmark
discount or range of discounts and then determine, based on the
factors we analyzed in Mandelbaum v. Commissioner, T.C. Memo.
1995-255, affd. without published opinion 91 F.3d 124 (3d Cir.
1996), whether the marketability discount for the transferred
interests should be greater than, less than, or equal to (or
within) the benchmark discount (or range of discounts). Because
we are unpersuaded by either expert’s determination of the
appropriate benchmark (starting point), we give little weight to
their respective analyses.
b. Mr. Dankoff’s Analysis
In his written report, Mr. Dankoff states that, in
Mandelbaum v. Commissioner, supra, the Tax Court “established a
benchmark lack of marketability discount range of 35% to 45%”.
He subsequently states that he analyzed the factors we reviewed
in Mandelbaum “as they relate to the subject Partnership in order
to determine whether the Partnership’s lack of marketability
discount should be above, below or within the range indicated by
the benchmark range of 35% to 45%.” Thus, although Mr. Dankoff
refers to numerous empirical studies elsewhere in his report, he
derives his quantitative starting point (35 percent to 45
percent) from the Mandelbaum case.
Page: Previous 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 NextLast modified: May 25, 2011