Maximize tax benefits and facilitate wealth transfer with strategic business valuations. Learn about valuation discounts, timing strategies, and compliance requirements for estate and gift tax planning.
Annual exclusion gifts, lifetime exemption planning, and charitable giving strategies requiring current fair market value.
Date-of-death valuations for federal and state estate tax returns, including alternate valuation date elections.
Establishing values for succession planning and ensuring agreements meet IRS requirements for estate tax purposes. Funded with life insurance - coordination with insurance professionals recommended.
Reflects lack of control over business decisions:
Reflects lack of ready market for interests:
When business success depends heavily on the owner/transferor, additional discounts may apply for estate planning purposes. This is particularly relevant for professional practices and owner-operated businesses.
Important: Discount ranges shown are for educational purposes only. IRS scrutinizes aggressive discounts. Each discount must be professionally determined and documented.
Important: Timing strategies should be coordinated with tax and legal advisors.
Important: The following are valuation timing considerations. Tax strategies should be developed with qualified tax advisors.
Valuations may be needed annually
Valuation critical at funding
Fair market value determination required
Note: Consult with tax counsel regarding structure and tax implications.
• Obtain baseline valuation early
• Document business purpose for transfers
• Consider recapitalizations to create minority interests
• Plan for multi-year gifting strategies
• Choose credentialed appraisers (ASA, ABV, CVA)
• Verify experience with estate/gift work
• Ensure independence from client
• Review prior IRS examination history
• Confirm appraiser meets IRS qualified appraiser requirements
• Verify no prohibited financial interests
• Maintain comprehensive gift records
• Document restrictions and their purposes
• File protective elections when appropriate
• Consider adequate disclosure requirements
• IRS-compliant valuation report
• Supporting documentation
• One consultation with counsel
• Amended valuations for changed circumstances
• IRS examination support
• Multiple entity valuations
• Annual update valuations
• IRS audit support and testimony billed separately
Maximize tax benefits and ensure IRS compliance with professional business valuations. Work with a credentialed appraiser experienced in estate and gift tax planning strategies.