Chapter 11: VALUATION TECHNIQUES AND STRATEGIES TO MINIMIZE TAXES ON FAMILY BUSINESSES
Valuation issues arise in a number of planning contexts in a family business. This chapter explores both the basic purposes for valuation and specific techniques used in valuing interests in family businesses. Although “valuation” is normally associated with estate and gift tax issues, valuation issues also arise in income tax planning and in a number of planning contexts in a family business such as buy-sell agreements, stock redemptions, and divorce. The chapter provides a detailed review of the IRS’s basic valuation approach set out in Revenue Ruling 59-60, and also explores valuation discounts and the IRS’s current position on discounts. The chapter details the Tax Code’s “Chapter 14” rules that apply to the valuation of family business buy/sell agreements. The chapter also includes a detailed discussion of Family Limited Partnership (FLP) valuation cases. Finally, the chapter explores a number of creative planning opportunities in the valuation area that can benefit family business clients.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.