Tax Valuations
Estate and Gift Taxes
Taxpayers most often require the services
of a business valuation firm when determining asset values for
estate planning or estate tax purposes. Valuation discounts represent
the most active fault line of conflicts between the IRS and the
taxpayer.
Many estates include assets that lack
liquidity and present special valuation challenges. And such assets
are frequently transferred as part of estate plans. Pluris has
in-depth experience providing valuations and addressing the valuation
issues confronting wealthy families, estate executors or their
advisors.
Restricted Stock, Warrants, Stock
Options
The LiquiStat™
database is a critical resource for valuing all types of restricted
securities, including restricted stock, warrants and stock options.
We believe that this resource, our in-depth knowledge of applicable
securities laws and regulations, the capital markets expertise
of our affiliates, and the depth and breadth of our valuation
experience makes Pluris uniquely qualified to value restricted
securities for estate and gift tax purposes.
Holding Companies with Real Estate
If
a holding company has a significant amount of real estate, we
value the company by comparing each property with similar property
types from the Spectrum database that have recent trading activity.
Holding Companies with Marketable
Securities
If a holding company
has marketable securities, we compare them with similar securities
from Morningstar's closed-end funds data.
Undivided Interests
Valuation
of any interest in a tenancy in common asset, such as art or real
estate, requires the use of empirical data on asset-holding companies,
as well as a separate analysis of what it may cost to partition
the assets. We use both standard methods to determine values.
Multi-Level Discounts
When
you have an entity within an entity, the underlying assets should
be discounted at both levels, since each level subtracts from
the level of control and liquidity the security owner has.
For more information on our valuations
for estate and gift tax purposes, contact
Pluris today.
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