New IRS Proposed Regulations Could Eliminate Valuation Discounts in Closely Held Family Entities

On August 2, 2016, The IRS released proposed regulations under Internal Revenue Code
Chapter 14 that would eliminate the application of discounts for minority interest and marketability for transfers between family members in closely held entities for gift, estate, and generation skipping transfer tax purposes ( IRC Sections 2701-2704). [Read more…]

Is There a Difference between Capitalization and Discounting of Benefits?

Capitalization and discounting of benefits are two methods of valuation related in that they are both parts on the income approach to valuation. However, one is more appropriate than the other under certain circumstances. [Read more…]

Divorce Valuation: Should Discounts for Loss of a Key Person Be Considered?

In making a divorce valuation, it is generally not appropriate to apply a discount for the loss of a key person if there will be no change in management and no key people will be leaving the company. The divorce value is generally measured [Read more…]