In this world nothing is certain but death and taxes.
—Benjamin Franklin, American Patriot, 1789
While Benjamin Franklin was right, taxpayers can do their best to minimize the tax effect of certain transactions. If the owner of a closely-held company decides to gift or donate a portion of their equity interest, or if the business interest is transferred as part of an estate, they may potentially have to pay out a significant amount of taxes based on the value of the interest being transferred. Estimating the value of a business interest for tax purposes is very important since underpaying gift or estate taxes due to valuation understatements or over-estimating charitable deductions can result in significant tax penalties. At Blue Abaco Consulting we use commonly accepted valuation methodologies to meet the valuation guidelines established by the IRS.
Blue Abaco Consulting performs valuations for the following tax-related purposes:
Estate and Gift Tax: We provide estimates of the fair market value of equity interests in closely-held companies and/or intangible assets for use in tax planning or tax filings.
Charitable Donations of Securities in Closely-Held Businesses: We provide estimates of the fair market value of equity interests in closely-held companies and/or intangible assets for charitable giving purposes.