Gift or Estate Tax Valuations:
Business valuation is often a critical component of a business owner's estate tax planning strategy. The discounts associated with gifting small non-controlling blocks of a business' equity (often under the annual exclusion, thus avoiding tax consequences) allow business owners to maximize the benefit of their annual exclusion gifts and exemption equivalent.
Many non-business owners, who own substantial assets such as marketable securities and/or real estate, often choose to set up family limited partnership (FLPs) or Limited Liability Companies (LLCs) to act as investment holding companies so they can, among other purposes, transfer their wealth out of their estate using the benefit of valuation discounts, thus transferring substantial wealth at reduced values.
A key component of this strategy is the defensibility
of the valuation report with the Internal Revenue Service (IRS).
Because of the nature of review conducted by the IRS a Full Valuation
Report is Required.
