David Nolte

I am a founding principal of Fulcrum Inquiry, an accounting and economic consulting firm that performs damage analysis for commercial litigation, forensic accountings, financial investigations, and business valuations. I am a Certified Public Accountant (CPA) and an Accredited Senior Appraiser (ASA), as well as having other professional credentials. I regularly serve as an expert witness involving damages measurement. My litigation-oriented resume is on Fulcrum's website.

Most commented posts

  1. Financial Crisis Inquiry Report is a Big Disappointment — 6 comments
  2. Combined, Two Studies Predict the Collapse Of Employer-Provided Health Coverage Under ObamaCare — 6 comments
  3. Another Undisclosed $17 billion Federal Deficit Increase — 5 comments
  4. IRS is paying tens of billions of fraudulent refundable tax credits — 5 comments
  5. Federal health care fraud enforcement efforts recover record amounts — 5 comments

Author's posts

Disgorgement remedy potentially broadened by Second Circuit

In a sharply-divided 2-1 vote, the Second Circuit Court of Appeals found that a civil disgorgement amount can exceed the profit that the defendant received. Although the case facts and Opinion directly involved insider trading in an action brought by the Securities and Exchange Commission, the rationale could presumably be applied in other wrongful conduct. …

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Permanent link to this article: https://betweenthenumbers.net/2014/04/disgorgement-remedy-potentially-broadened-by-second-circuit/

Severance payments remain FICA taxable

On March 25, the U.S Supreme Court ruled in favor of the IRS over whether certain severance compensation is subject to payroll taxes. My prior blog post on this Sixth Circuit case is here. The Supreme Court ruled 8-0 to overturn the Sixth Circuit decision. This case would have had huge tax impact had the …

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Permanent link to this article: https://betweenthenumbers.net/2014/03/severance-payments-remain-fica-taxable/

Estate tax penalty occurs because of a lack of a professional appraisal

In Estate of Helen P. Richmond et al. vs. vs. Commissioner T.C. Memo. 2014-26, February 11, 2014, the Tax Court addressed reasonably straightforward estate tax valuation questions in a reasonably predictable manner. The additional tax imposed because of a higher valuation was not particularly surprising to me, and probably not to others who regularly practice …

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Permanent link to this article: https://betweenthenumbers.net/2014/03/estate-tax-penalty-occurs-because-of-a-lack-of-a-professional-appraisal/

An example of a proper expert exclusion under Daubert

In an unpublished opinion in re: Craig Moore vs. International Paint, L.L.C., (No. 13-30281, November 15, 2013) the Fifth Circuit upheld the District Court’s exclusion of an expert witness and the related Summary Judgment Order. The case provides a worthwhile primer on when a Daubert motion should be successful. Too often, judges go beyond the …

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Permanent link to this article: https://betweenthenumbers.net/2013/12/an-example-of-a-proper-expert-exclusion-under-daubert/

Use an independent service to help protect against California’s new $10,000 penalty for whistleblowers

Employees have protection as whistleblowers from a wide variety of federal and state laws. Effective January 1, 2014, California added SB 486 to this list of legal protections. The new California law broadens an employee’s right to pursue legal action if retaliated against for reporting suspected wrongdoing. Perhaps most importantly, the law creates a civil …

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Permanent link to this article: https://betweenthenumbers.net/2013/12/use-an-independent-service-to-help-protect-against-californias-new-10000-penalty-for-whistleblowers/

SEC proposed rules for Regulation A+ filings

Section 401 of the Jumpstart Our Business Startups Act (the “JOBS Act”) added Section 3(b)(2) to the Securities Act. This directs the SEC to adopt rules exempting offerings of up to $50 million of securities annually from the registration requirements of the Securities Act. Last week, the SEC provided proposed rules to implement this portion …

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Permanent link to this article: https://betweenthenumbers.net/2013/12/sec-proposed-rules-for-regulation-a-filings/

Update your buy-sell agreement as part of your end-of-year duties

Buy-sell agreements are an important business continuity tool that can assist a business in difficult transition times. Usually, the buy-sell agreement either contains a formula, or requires an annual determination of the price to be employed. All too frequently, the business owners do not revisit the formula to ensure that it remains sensible in light …

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Permanent link to this article: https://betweenthenumbers.net/2013/12/update-your-buy-sell-agreement-as-part-of-your-end-of-year-duties/

Ernst & Young gets settlement deal of the decade

E&Y just settled the Lehman Brothers class action against them for $99 million. It made little news. The 2008 Lehman Brothers bankruptcy was at least partially caused by accounting malfeasance. This article describes the bankruptcy examiner’s report on this wrongdoing. Arthur Andersen was entirely destroyed for a bad audit of Enron that was no worse …

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Permanent link to this article: https://betweenthenumbers.net/2013/12/ernst-young-gets-settlement-deal-of-the-decade/

Accelerate equipment purchases to preserve an important 2013 tax break

The first-year bonus depreciation law which allows rapid write-off of equipment purchases is expiring at the end of 2013. Companies who can do so are well advised to accelerate their equipment and software purchase(s) before the end of 2013. Combined, the two laws allow 60% of equipment to be written off in the first year. …

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Permanent link to this article: https://betweenthenumbers.net/2013/12/accelerate-equipment-purchases-to-preserve-an-important-2013-tax-break/

Charitable remainder trusts are a now more useful

In 2013, the tax rate on capital gains increased to 20%, plus a 3.8% Medicare surtax for affluent taxpayers. This substantial capital gains tax increase causes charitable remainder trusts to be more attractive. Typically, the trust is funded with highly appreciated assets. The trust can sell these assets and avoid tax on any capital gain. …

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Permanent link to this article: https://betweenthenumbers.net/2013/12/charitable-remainder-trusts-are-a-now-more-useful/