The last several years have seen an unprecedented level of wealth transfer transactions, including interests in privately held operating companies.

 

Effectuating those transactions so close to the end of the year when it involves a complex appraisal, such as a privately held business, can be problematic.

 

Depending upon when a valuation project is started, there may be insufficient time to obtain a robust and reliable appraisal prior to year-end.

Many practitioners will employ the use of defined value gift clauses, which in effect, allow for a gift to be made prior to receiving the appraisal.

For more information on our thoughts on the use of defined value gift clauses, please visit our website using the link below.

Learn More

Our thanks to MPI.

Learn more about Use of Defined Value Gift Clauses and MPI, please click.

About MPI
MPI (Management Planning Inc.) is a business valuation, litigation support, forensic accounting and M&A advisory firm providing valuations for a variety of tax, financial reporting, litigation and other business applications, as well as corporate advisory services to business owners and their representatives.

MPI has over 80 years of experience preparing Business Valuations for estate and gift tax planning and estate tax administration matters. MPI’s work product is used as the foundation for succession planning strategies implemented by advisors for numerous types of businesses and assets. MPI has decades of experience presenting and defending its work product to IRS agents and engineers at the initial audit and appellate levels. Our valuation conclusions have withstood scrutiny under audit and been accepted as filed at a high rate, which has the effect of helping clients avoid the perils and costs of tax court or ongoing tax disputes with the IRS.

We hope you've enjoyed this article. While you're here, we have a small favor to ask...

As we prepare for what promises to be a pivotal year for America, we're asking you to consider becoming a member.

The need for fact-based reporting of issues important to multi generational businesses and protecting a lifetime of savings has never been greater. Now more than ever, multi generational businesses and family businesses are under fire. That's why Family Enterprise USA is passionately working to increase the awareness of issues important to generationally-owned family businesses built on hard work, while continuing to strengthen our presence on Capitol Hill. The issues we fight for or against with Congress in Washington DC include high income tax rates, possible elimination of valuation discounts, increase in capital gains tax, enactment of a wealth tax, and the continued burden of the gift tax, estate tax and generation skipping tax.


Family Enterprise USA promotes family business and job creation, growth, and sustainability by advocating for family businesses, their lifetime of savings, and the issues they face running their businesses every day. Some of the issues we fight for or against with Congress in Washington DC are high Income tax rates, possible elimination of valuation discounts, increase in capital gains tax, enactment of a wealth tax, and the continued burden of the gift, estate and generation skipping taxes. Family Enterprise USA represents and celebrates all sizes and industries of family businesses and multi-generational employers.

Family Enterprise USA (FEUSA) is a 501(c)(3) non-profit organization. Family foundations can donate.


#FamilyBusiness #EstateTax #Deathtax #CapitalGainsTax #incometaxrates #gifttax #Generationskippingtax #InheritanceTax #repealestatetax #promotefamilybusinesses #wealthtax #taxLegislation #AdvocatingForFamilyBusinesses #incometax #Generationallyowned #Multigenerationalbusiness #taxseason #federaltaxpolicy @FamilyEnterpriseUSA @PolicyAndTaxationGroup @DitchTheEstateTax #FamilyEnterpriseUSA #PolicyAndTaxationGroup #DitchTheEstateTax