Valuations for Tax Purposes
Our decades of experience in tax accounting and preparation of valuations for tax purposes provides us with the insights and proficiencies needed to properly meet a Fair Market Value standard and avoid and/or address Internal Revenue Service challenges to our opinions of value.
But . . . what does this actually involve?
Valuations for tax purposes cover a wide swath of tax law and regulation — estate and gift taxation, charitable giving, 409(a) stock options grants, and many other planning and transaction scenarios. Each valuation for such purposes requires strict adherence to a Fair Market Value standard of value as delineated in Revenue Ruling 59-60:
…the price at which the property would change hands between a willing buyer and a willing seller when the former is not under any compulsion to buy and the latter is not under any compulsion to sell, both parties having reasonable knowledge of relevant facts.
In order to meet a Fair Market Value standard of value, valuation professionals must be able to understand and restate both the historical and future performance of the subject company in terms of a “hypothetical willing buyer-willing seller” and identify the effects of the subject ownership interest (controlling or non-controlling, marketable or non-marketable) on value.
They must also understand the ins and outs of the tax rules being applied to a client matter.
At Braver Valuation Services, we understand and can successfully maneuver these intricacies.
We’ve got our clients covered.
