Year end gifts: Valuing a business for transfer tax purposes

Description

Abstract: The end of the year is a time for gift giving. Over time, annual gifts of closely held business interests add up and can substantially lower the amount of taxes that a business owner’s estate will eventually owe. This article explains how estate planning tools can be used to lower estate tax costs and why it’s important to obtain a qualified appraisal from a qualified appraiser to support fair market value estimates. A sidebar discusses how the IRS may limit valuation discounts on transfers of closely held business interests in the future.