Estate & Gift Tax Valuations
Business interests must be valued when transferred as a gift or reported for estate tax purposes. The IRS mandates that businesses be valued based upon a “fair market value1” standard of value.
Discounts (lack of marketability, lack of control, etc.) are considered for the determination of fair market value. These discounts, however, are regularly challenged by the IRS, which is why it is imperative that valuations needed for gift and estate purposes are prepared by certified valuation analysts.
Estate and Gifting Valuation services we offer include (for/of the following):
- Control or Non-Control Ownership Interests in investment holding companies
- Control or Non-Control Ownership Interests in closely held businesses
- Estate Tax Determination
- Litigation/Negotiation Support
- Value for Gifting Purpose
When gifting interests in a company or reporting values for estate tax, a comprehensive, well-supported business valuation is crucial. At Anchor Business Valuations & Financial Services, LLC, our professionals work closely with each client’s advisors (attorneys, tax professionals, etc.) to provide thoroughly documented and supportable valuation analyses.
1 IRS Revenue Ruling 59-60 determines the basis of fair market value and states that the fair market value is, “The amount at which the property would change hands between a willing buyer and willing seller, when the former is not under any compulsion to buy, and the latter is not under any compulsion to sell, both parties having reasonable knowledge of relevant facts.”