BUSINESS

Business Valuations for Income, Gift and Estate Tax Purposes

Business Valuations for Income, Gift and Estate Tax Purposes

Business valuations are a critical component of successful tax-planning strategies for individuals and families that own closely-held businesses. In these situations, the company is probably the most valuable asset owned by the individual or family. An accurate valuation is essential to lowering income, gift, and estate taxes, ensuring tax compliance, and growing family wealth.

The Internal Revenue Code and regulations largely govern how business valuation engagements are performed. The appraiser must also be familiar with IRS revenue rulings. There are substantial penalties for undervaluation of assets on estate and gift tax returns.

All valuations performed for gift and estate tax purposes are governed by Revenue Ruling 59-60. For charitable contribution purposes, the 2006 Pension Protection Act (and the Technical Correction Act of 2007) require that a “qualified appraisal” be performed by a “qualified appraiser.”

OP Business Valuations specializes in preparing business valuations for income, gift, and estate tax purposes and using popular estate planning vehicles like family limited partnerships (FLPs). 

We have worked closely with business owners and their attorneys, accountants, financial planners, and other estate planning professionals to develop a clear understanding of laws and regulations related to the valuation of closely-held business interests. 

We are familiar with the various tax provisions affecting business valuations, including audit and U.S. Tax Court proceedings and decisions related to valuation discounts and premiums. Our quality control and internal review processes help ensure expedited valuation results while reducing common process and analysis errors. And our valuation opinions are supported by thorough research and documentation that will stand up if challenged in a court of law.

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Business Valuations for Income, Gift and Estate Tax Purposes

Our valuation professionals are fully accredited and credentialed by the National Association of Certified Valuators and Analysts (NACVA) and the American Institute of Certified Public Accountants (AICPA) to perform all types of business valuations.
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In 2007 I started a non profit 501c3 corporation to promote arts programs in public elementary schools. I was in need of a reliable professional accountant that could help me through the process of implementing a strong and well planned accounting program. Max Panchuk was recommended and his support, skill, and dedication has been more than I ever expected.

Steve Petersen, CEO | Steve Petersen Productions, Inc. 501c3
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