IRS Targets Valuation Discounts in Proposed Regulations

Share Button

The Treasury Department is proposing to significantly curb the use of certain adjustments (i.e., discounts for lack of control and/or marketability), which commonly apply in the valuation of transferred interests in operating businesses and family limited partnerships for estate, gift, and generation skipping transfer taxes. The new proposed regulations aim to close a perceived loophole in Section 2704 of the Internal Revenue Code that enabled taxpayers to apply these discounts when transferring non-controlling business ownership interests. In the eyes of the IRS, such transfers can have “minimal economic effects, but result in a transfer tax value that …read more

Read more here:: Beyond The Numbers

About Carrie Sherreard

Carrie Sherreard has written 59 post in this blog.

Share Button