Relative to Estate planning, gift tax, and probate, our business valuations meet the all of the requirements of the IRS Revenue Ruling 59-60. We also carve out the Personal Goodwill, which lowers the value and tax impact; ask your attorney if this is acceptable in your state.
In many states, the valuation principals relative to personal and professional goodwill are relevant to business transfers due to gifting and death of an owner. It may be very important to know how much of the business goodwill is personal vs. enterprise. Our business valuations discern between these two very important intangible assets.
Our firm is often approached by estate attorneys to provide business valuations for their clients who own businesses and need defendable, comprehensive, affordable business valuations for purposes of estate planning, gift planning, tax planning, and probate. IRS Revenue Ruling 59-60 (60th revenue ruling in 1959) is currently the most widely cited source of business valuation procedures in the United States for closely-held corporations. While its initial intent was for estate and gift tax calculations, over the years it has been adopted by valuation experts in other areas. Its principles are applicable in the valuation of most closely-held business valuations.
To withstand the highest level of scrutiny, not only will our valuations be in compliance with IRS Ruling 59-60, but also with the American Institute Of Certified Public Accountants' (AICPA) Statement on Standards for Valuations Services (SSVS), a widely recognized standard.
The majority of American jurisdictions hold that personal goodwill of a business cannot be classified as a business asset. To that end, our business valuations quantify and separate the personal (or professional) goodwill component from the business (or enterprise) goodwill component, so the local team or jurisdiction may decide to include it or exclude it.
WHY Start with a FREE Consultation?
1. You get valuable, FREE advice from an Expert that understands federal requirements.
2. We will discuss the impact of personal goodwill. This could be significant.
3. We will address the circumstances around the valuation to ensure you are on the right path.
4. WE DO what WE SAY we will do, so we come highly recommend from our past clients and attorneys.