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Business Valuation Appraisal Guides & Insights
Expert guidance on business valuation valuation — what drives value, when you need a USPAP-compliant appraisal, and how the process works.
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How Form 709 Establishes Gift Tax Basis and Starts the IRS Statute of Limitations
Filing Form 709 does more than report a taxable gift: a well-documented fair market value on the return can start the IRS's three-year assessment clock and shield that valuation from a later challenge. This guide explains gift tax basis under Form 709, the carryover basis rule, and why adequate disclosure depends on a defensible appraisal.
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Fair Market Value vs. Appraised Value: Why a Qualified Appraisal for Gift Tax Matters
A dealer letter or online price estimate is not the same as a qualified appraisal for gift tax reporting, and the gap between them can cost a donor penalties and an open-ended IRS audit window. This guide walks through what the appraisal must document to start the statute of limitations and avoid valuation penalties.
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How to Value a Minority Interest in a Family Business for Gift Tax Purposes
A minority interest gifted out of a family business is worth less than its pro-rata share, and the IRS agrees, within limits. This guide explains how the minority interest discount for gift tax works, what supports it, and how to report it correctly on Form 709.
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What Happens If You Don't File Form 709 When You Should Have
The penalty for not filing a gift tax return is often $0 if your gifts sit inside the lifetime unified credit, which surprises most people. The real cost is that the IRS's three-year window to challenge your gift's value never opens, leaving it exposed for decades.
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Discount for Lack of Marketability in Gift and Estate Tax Valuations
A discount for lack of marketability can shrink a gift or estate tax valuation by 20% to 50%, but only when the appraiser's methodology holds up to IRS scrutiny. This guide explains how DLOM is quantified, what ranges courts have accepted, and where the Tax Court has drawn the line.
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How Valuation Discounts Work in Gift Tax Appraisals for FLP and LLC Interests
Valuation discounts in gift tax appraisals can meaningfully reduce the taxable value of a gifted FLP or LLC interest, but only when the discount is properly supported and disclosed. This guide walks through DLOC, DLOM, Form 709 disclosure rules, and the case law that decides whether discounts hold up.
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