The "BIG" Tax Issue in Business Valuations
Logically a collection of assets subject to a liability is worth less than assets free of such obligation. This is the underlying premise of the built-in gains (“BIG”) valuation discount which is sometimes also referred to as trapped in or embedded capital gains tax.

Typically, a taxpayer incurs a tax liability to the extent an asset is sold at a price exceeding the seller’s adjusted basis in an asset. The issue from a valuation context is whether this tax liability should be taken into consideration in determining the fair market value of an ownership interest in a closely-held business. more

PA Requires Divorce Courts to Consider Tax-Effecting a Business
How (and whether) to tax-effect depends very much on jurisdiction, and there’s no clearer reminder of this than Balicki v. Balicki, 2010 PA. Super. 134 (July 30, 2010).

In 2005, the Pennsylvania legislature amended the state’s Divorce Code, adding two specific considerations in the family courts’ equitable division of property:

1. The Federal, State, and local tax ramifications associated with each asset to be divided, distributed, or assigned, which ramifications need not be immediate or certain; more
   

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