Estate and Gift Tax Valuation

Tax advisors, accountants and attorneys refer their clients to Marshall & Stevens because we have a full complement of highly-experienced professionals who value businesses, financial instruments, intangible assets, real estate, and equipment for compliance with the Internal Revenue Code for wealth transfer (gifting) as well as estate tax reporting purposes.

The IRS expects Estate and Gift Tax valuations to be performed by professionals experienced in valuing similar enterprises and assets and that each analysis comply with IRC 59-60, including consideration of all three generally accepted approaches to value, as they may apply: Income Approach, Market Approach and Cost Approach.  Our staff meet the IRS standards of a “Qualified Appraiser.” 

For fractional interest studies (aka “Discount Studies”), our analyses consider multiple valuation methods to determine the difference in value between a control and a minority interest, as well discounts for lack of marketability, if appropriate.  Such methods include benchmarking (i.e. Mandelbaum analysis), option-pricing models (i.e. Finnerty, Chaffe, and Black-Scholes) and restricted stock analyses, as we believe are applicable.

We assist equity holders with the valuation of domestic and international investments, including:

  • Interests in closely-held businesses and in thinly-traded public companies.
  • Equity and debt instruments in simple and complex capital structures.
  • Carried interests and investments in business development companies (“BDC”), private equity funds, hedge funds, and real estate funds.
  • Interests in trusts, LLCs, LP’s, FLPs, S-corps, etc.
  • Marketable securities.
  • Real estate, intellectual property, and equipment.
  • Interests in real estate holding companies, combining the skills of our real estate appraisers and financial valuation analysts.

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