Charitable Contributions Business owners may desire to donate a portion of their privately held business to charity. As such, a tax deduction in the amount of the gifted stock can be taken in the year that the donation is made. Per IRS requirements, substantiation of the amount of gifted stock must be made by a business valuation that has been completed by a qualified appraiser. Since these tax deductions are carefully monitored by the IRS, A&C provides accurate, thorough, and defensible valuation reports that will stand up to IRS review.
Estate & Gift Taxes The IRS requires a business valuation when a business owner desires to gift an interest in their company to a friend or family member. Additionally, in the event that a business owner dies, the beneficiaries of the estate must know the fair market value of the business in order to determine their estate taxes.
Family Limited Partnership A business valuation is often necessary to determine an interest in a family limited partnership. A family limited partnership is a nontaxable entity that holds appreciable assets and whose partners consist primarily of family members.
C to S Corporation Conversions Upon conversion from a C Corp to an S corporation, the IRS requires the company to be re-valued in order to determine potential built-in gains tax that may be applied if the company were to sell or have any change in control event during the next 10 years.
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