Estate and Gift Tax

Business Valuation in

Estate and Gift Taxation

IRS Building in Washington, D.C.

Determining the value of a business or fractional interest in a business can have a substantial impact on estate taxes and gift taxes and requires highly technical knowledge and experience.

Our firm performs valuations of shareholder, limited partnership, and membership interests in closely held entities and qualified plans, primarily for estate and gift tax and other fiduciary tax reporting purposes. We also perform valuation of promissory notes and undivided interests in real property.
Our team of professionals possesses in-depth knowledge and understanding of the laws that govern partnerships, limited liability companies and corporations. We are also well-versed in IRS rulings, regulations and court cases that influence valuation methodology.
We work closely with prominent estate planners, attorneys, accountants, financial planners and pension administrators throughout the Southwest and across the United States. We are frequently asked to make educational presentations to charitable organizations and estate tax and planning groups.
Review Process
Before an appraisal is submitted to the client, it is subject to a thorough review process to ensure that the value conclusion is supportable and communicated to the reader in a clear, concise and logical manner. Each valuation complies with the standards and regulations set forth in USPAP (Uniform Standards of Professional Appraisal Practice).

IRS Scrutiny

The IRS frequently scrutinizes the fractional interest discounts applied by appraisers. Consequently, it is imperative that the value conclusion be objective and supportable. The appraiser must be knowledgeable of state and federal laws that govern the entity as well as Internal Revenue Codes and Treasury Regulations when developing an opinion of value. It is also essential that valuation experts read and understand relevant Tax Court cases that influence appraisal methodology.
We are dedicated to providing you with an opinion of fractional interest value that accurately reflects the fair market value of the partial interest and that is defensible if challenged by the IRS. We take great pride in our knowledge of the statutes, codes, regulations, Tax Court cases, studies, and valuation methodology, which enables us to provide our clients with a value conclusion that is not only technically plausible, but reasonable as seen from the perspective of a hypothetical buyer and seller.
RELATED PAGES
Representative Engagements: Summaries of recent business valuation engagements
Certifications: Our designations and certifications attests to our valuation professionals' credibility and skill
Industry Knowledge: Kotzin Valuation Partners offers experience with companies in every major economic sector
ARTICLES
Valuation of Promissory Notes: Not as Simple as It Seems  The valuation of a debt instrument should incorporate not just the amount and timing of future payments, but also a detailed analysis of the instrument’s terms and conditions, the underlying collateral, and factors that impact the instrument’s risk profile
Blockage Discounts in the Valuation of Public Stock  When a party owns a large block of shares in a public company, the real value of those shares may be significantly lower than the traded market price
Discounts for Lack of Control, Marketability  A Tax Court ruling strengthens the IRS’s scrutiny of transfer restrictions in family limited partnerships.
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