Delivering on the Promise of helping you meet your tax compliance requirements while considering all appropriate discounts and adjustments to value.

Defending the value of an ownership interest in a privately held company against the IRS without a valuation expert is a difficult task. We perform thorough, well-reasoned analyses that provide our clients with reliable valuations that are supportable before the IRS and other taxing authorities.

Estate Tax Planning and Compliance

When a loved one passes away, if he or she had an ownership interest in a privately held company, it is necessary to place a value on that investment for his/her estate tax return. We provide our clients with valuation reports that satisfy this requirement and are supportable before the IRS.

Gift Tax Planning and Compliance

When it comes to passing the wealth that you earned through your privately held business to your family members, a reliable valuation is an important ingredient in the process. Without a valuation report to support the reported value of a business ownership interest on a gift tax return (or when relying on a report of poor quality for that matter), the likelihood of successfully defending that value before the IRS is low. We provide our clients with valuation analyses that credibly substantiate the value of the ownership interest being gifted.

C to S Corporation Conversion – Built-In Gains Tax Calculation

S Corporations offer many tax advantages to owners, chiefly, a single level of taxation. When a business that was organized as a C Corporation elects to be taxed as an S Corporation, a valuation is necessary to determine the amount of built-in gains in the company’s assets – particularly its intangible/goodwill value. We are able to provide our clients with the analyses necessary to determine a business’s built-in gains for reporting to the IRS upon conversion from a C Corporation to an S Corporation.

Appraisals for Charitable Contributions

If you are donating stock in a privately held company and are looking to claim a tax deduction for the charitable contribution, a written valuation report that supports the fair market value of the donation must be filed with your tax return. We work with our clients to satisfy this IRS requirement when the need arises.

Issuance of Stock Options (409A) and Equity-Based Compensation

When issuing stock options, it is imperative that their strike price be less than or equal to the underlying stock’s fair market value on the date of issuance. When this guidance is not followed, stiff tax penalties can result. We can value your business and the stock options/equity-based compensation you issue to help you comply with this tax regulation and avoid the potential penalties that may result otherwise.

Related Party Transactions

When transactions between related parties occur, it is sometimes necessary to obtain a third-party valuation to support the fact that the transaction occurred and an arm’s-length price. If business ownership interests are being passed between related parties, we can assist in their valuation to provide an accurate indication of their fair market value.

Questions? Contact Robert Ranallo:

Robert A. Ranallo, CPA / ABV / JD / CVA / CFF