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The House Democrats has proposed that non-business assets would not be allowed to have valuation discount applied, no matter how they are held!!
Don’t Wait, Act Now! Contact your member of congress and tell him /her: DO NOT ELIMINATE VALUATION DISCOUNTS FOR NON-BUSINESS ASSETS!!!
The proposed elimination of valuation discounts would apply both to gifts during life and at death of non-publicly traded stocks, limited partnership interests, limited liability company interests and other interests unless the interests are in operating businesses.
This ignores the basic valuation rule of an asset – “what a hypothetical willing buyer will pay a hypothetical willing seller with neither being under a compulsion to buy or sell” –and could artificially increase the value of assets causing additional estate or gift tax to be paid unnecessarily.
While the proposal would carve out operating businesses, it is not clear that the exception would apply to most family businesses, which are commonly owned through limited liability companies, partnerships, and S corporations.
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For a summary of all the tax proposals affecting family businesses CLICK HERE.
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Please stay safe and healthy,
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pmsoldano@family-enterpriseusa.com
712 H Street NE Suite 1330
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About Family Enterprise USA
Family Enterprise USA advocates for American Family business. We help family businesses communicate their challenges and contributions to American economic freedom to Legislators. We represent all American family businesses; not just specific industries and provide research to enhance the opportunity for success. We help family businesses continue to establish their unique business legacy. Family Enterprise USA is a 501(c)(3) non-profit organization.. Family foundations can donate.
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Have questions or would like more information about becoming a Member or donating? Please contact John Gugliada at jgugliada@family-enterpriseusa.com.
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Family Enterprise USA Sponsors
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