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Gift & Estate Tax Valuations

As your assets grow, you naturally want to ensure that there is a plan in place for its distribution when the time comes, as either an inheritance or a gift. Every estate or gift bestowal is subject to certain federal taxes, and as such, any plan should anticipate them. Keeping that in mind, sometimes it takes a village to put your affairs in order. We work with attorneys, certified public accountants, and financial planners to create effective estate and gifting plans to realize their clients’ overall objectives.

 

The Importance of Asset Appraisals

Since estate and gift taxes are based on the fair market value of assets, it is important to have a valuation performed when those assets include a closely held business. Getting these appraisals done right is essential because they are subject to scrutiny by many federal agencies including the Internal Revenue Service (IRS). If these institutions deem that the assets in question have been under or over-valued, or that there are clerical errors in the reporting, they could levy severe penalties.

Unfortunately, errors can be common occurrences; those in the business know just how often tax guidelines expand or change, and how diverse the factors are that bear on asset valuations. Each of these factors can lead to you paying exorbitant taxes if they are not accommodated. Hiring an accredited appraisal firm will do much to mitigate these issues.

How Do Gift & Estate Tax Valuations Work?

Professional valuations can be tricky, even if you know what to look for. Peak Business Valuation accomplishes these appraisals in a few ways. Ultimately, this type of scrutiny is critical to saving you money. Not only are you having to deal with the Gift & Estate tax, but if you are not participating in an FLP or LLC then you need to consider the various taxes over the transfer of money as well.

As a general partner in either of these entities you can bypass a lot of these tax stipulations, but having a true valuation done becomes even more essential. As is expected, the government keeps a watchful eye on estate tax returns, and by knowing the full appraisal of your estate you can circumvent much of the grief that comes from having to deal with tax penalties.

What Our Expertise Can Mean for Your Business

We can perform discount studies (lack of marketability and/or lack of control) for family limited partnerships (FLP) and limited liability companies (LLC). Both entities require a trained eye when determining overall value, making note of investments in land, bonds, or businesses either privately or publicly traded. Taxes also play a part in the appraisal, especially for LLCs with pass-through tax amendments. We also perform business valuations of equity interests in privately held operating companies. This requires a holistic view of their liabilities and moving capital.

  • We have the needed experience to properly appraise closely-held businesses, such as family-owned and small businesses; objectively assessing their fair market value.
  • There are multiple accepted approaches to business valuations. Having more than a working knowledge of those valuation approaches puts us in the unique position to take advantage of an approach that works for your business.
  • We hold the appropriate credentials that give our team the appropriate credibility in the eyes of the IRS. What does that mean for your valuation? Our valuations are less likely to be challenged, and we’re prepared to defend our reports.

 

Full Measured Compliance

Our gift and estate valuations use commonly accepted methodologies that adhere to the valuation guidelines established under Revenue Ruling 59-60 and are provided in a report format that satisfies the IRS’s “Qualified Appraisal” requirements.

Let Peak Business Valuation Help

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With respect to gift and estate tax valuations, Peak Business Valuations has worked with the business owners in the following industries:

  • Automotive
  • Beverage, Brewing, and Bottling
  • Consumer Products
  • Construction, Design, and Engineering
  • Data, Data Storage, and Cybersecurity
  • Distribution Services
  • Financial Technology and Payments
  • Financial Sponsors and Asset Management (Private Equity, Hedge Funds, Venture Capital, Business Development Companies)
  • Food Processing, Restaurants, and Hospitality
  • Franchises and Other Multi-Location Properties
  • Health & Beauty
  • Healthcare, Life Sciences, Medical Products & Devices, and Pharmaceuticals
  • Industrial Products and Manufacturing
  • Media Communications, Entertainment, and Printing & Publishing
  • Medical and Dental Practices
  • Pet and Animal Care Industry
  • Software as a Service (SaaS)
  • Sports, Fitness, and Recreation
  • Technology and Telecommunications
  • Textiles
  • Transportation, Supply Chain
  • Waste Management
  • Wholesale Distribution

With a decade of valuation experience, we have comprehensive experience in gift and estate tax valuations. Our team has a passion for what we do, and a deep knowledge that covers a wide variety of markets and industries. We’re confident we can help you not only properly conduct valuations, but do our work in a creative and effective manner. If you’re ready to have your business and assets valued, we’re ready to help. Contact us today to schedule an appointment or to ask us any questions.

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