As this article from the Wall Street Journal details, the IRS recently lost another case, this time in the Ninth Circuit, dealing with gift tax issues. Where family members are trying to make signficant lifetime transfers to loved ones, there is frequently some uncertainty over how to value the assets, especially business or real estate [...]
Joseph T. Hahn
All posts tagged valuation discount
IRS Loses Gift Tax Battle
Posted by Joseph Hahn on September 20, 2011
http://hahnestateplanning.com/2011/09/20/irs-loses-gift-tax-battle/
How To Value A Closely Held Business Interest
This article from Smart Business discusses many of the factors that are considered when attempting to value a closely-held business. These valuations are frequently conducted at the time of a death, for the estate tax return, or when putting in place a gifting strategy. The author discusses why valuation discounts are permitted (lack of control, [...]
Posted by Joseph Hahn on August 4, 2010
http://hahnestateplanning.com/2010/08/04/how-to-value-a-closely-held-business-interest/
IRS Increases Scrutiny Of Family Limited Partnerships
The New York Times reports that the IRS has increased its scrutiny of family limited partnerships, a common estate planning strategy for families with taxable estates. The reason why the FLPs are so attractive is that by placing financial assets (real estate, securities, cash, businesses) into the partnership, the value of the assets can be [...]
Posted by Joseph Hahn on July 31, 2010
http://hahnestateplanning.com/2010/07/31/irs-increases-scrutiny-of-family-limited-partnerships/
IRS Increases Scrutiny Of Family Limited Partnerships
The New York Times reports that the IRS has increased its scrutiny of family limited partnerships, a common estate planning strategy for families with taxable estates. The reason why the FLPs are so attractive is that by placing financial assets (real estate, securities, cash, businesses) into the partnership, the value of the assets can be [...]
Posted by Joseph Hahn on July 31, 2010
http://hahnestateplanning.com/2010/07/31/irs-increases-scrutiny-of-family-limited-partnerships-2/
VIX Index Now Being Used To Save On Estate Tax?
This article from Financial Advisor details a new strategy by some leading appraisers when evaluating the value of privately held businesses or blocks of restricted stock in publicly traded companies. What's the strategy? Using the Chicago Board Options Volatility Index, or VIX, as a tool to determine how large the valuation discount should be for [...]
Posted by Joseph Hahn on May 27, 2010
http://hahnestateplanning.com/2010/05/27/vix-index-now-being-used-to-save-on-estate-tax/
