Tax Court Takes First Step Towards Tax-Affecting

Recently, in Estate of Aaron U. Jones v. Commissioner, the Tax Court held in favor of the taxpayer in a set of complex valuations of sawmill and timber operations.¹ In its decision, the court approved the tax-affecting of the financial results of a pass-through entity when valuing the entity. This turn was long-awaited and will be welcomed by taxpayers and their advisors far and wide.