Our tax valuations are for gift tax, estate tax as well as estate planning.
Gift Tax: The gift tax is a tax on the transfer of property by one individual to another while receiving nothing, or less than full value, in return. The tax applies whether the donor intends the transfer to be a gift or not.
Estate Tax: The Estate Tax is a tax on your right to transfer property at your death. It consists of an accounting of everything you own or have certain interests in at the date of death
Estate Planning: This refers to the proactive arrangement a person puts in place with regards to their estate during their life.
Here are some examples of entities, interests and situations where a business valuation may be needed:
Gifting of closely held stock and partnership/LLC interests
Buy-Sell and shareholder agreements
Creation of non-voting stock for gifting purposes
Family limited partnership and limited liability companies, including entities holding real estate, marketable securities, or closely held common stock
Family Limited Partnerships (FLPs), Family Limited Liability Companies (LLCs), and other types of entities have been a popular estate planning tool for years. Aside from the business purposes of such entities, such as centralized management and protection of assets from creditor claims, they also may offer tax advantages through valuation discounts.
The most common discounts applied are for a Dicsount for Lack of Control ("DLOC") and Discount for Lack of Marketability ("DLOM"). Because these discounts have such a large impact on overall valuation (often ranging from 20% to 40% of the overall value), a proper and well documented valuation report is critical in order to bear scrutiny.
WVG works with estate planning attorneys, wealth advisors, CPA's and other estate planning professionals in order to help achieve thier client's goals. Our valuations are guided by sound theory and appropriate precedent rulings such as IRS Revenue Ruling 59-60. In addition our reports comply with the professional standards as promulgated by the National Assocation of Certified Valuation Analysts (NACVA).