Yes! Business valuations are a must for estate and gift tax purposes. Estate valuation principles relating to business interests are in Regs. 20-2031-2 (f) and 20-2031-3. Gift tax valuation principles relating to gifts
Category Archives: Estate Planning
What Is Business Goodwill?
The notion of goodwill has existed since mankind first entered into commercial activity. In ancient Egyptian bazaars, merchants knew the location closest to the city gates would providethe best opportunity to sell goods.
What Are the Various Uses for Valuation?
Business valuations are critical for businesses of any size–and not just when a business is being bought or sold. Some common uses of valuations include:
What Valuation Considerations Should Be Made in Buy-Sell Agreements?
Values established by buy-sell agreements may be ignored, may be controlling, or be only a factor to consider in determining values. The Tax Court listed the following factors for making the buy-sell agreement price
What “Discounts” Should Your Clients Take Advantage of When Gifting a Percentage of Their Business? (for Estate Planning)?
Generally there are two discounts considered in the valuation of a closely held business: Marketability Minority Interest The marketability discount will apply in many valuation situations, whereas the minority discount will only apply when the interest being valued is a minority interest. The market
