Gifting through a limited partnership (LP) or limited liability company (LLC), can help you reduce tax liabilities. But transferring wealth to the next generation needs to stand up to IRS scrutiny.
A business valuation that supports the value of the gift can give you confidence that your numbers add up. The valuation should be done by an appraiser with the education and experience necessary to meet the IRS’s definition of a qualified appraiser.
Entity requirements*
We can provide you with a formal business appraisal at a price that is significantly lower than valuations for other types of entities — if the project meets the following criteria:
- Entity is a holding entity (i.e. not an operating company)
- Entity holds real estate and/or marketable securities as its asset holdings (the value of which is supplied by the business)
- Entity does not hold other assets that need to be independently valued
- Entity agreement requires pro-rata profit/loss allocations, with no allocation or distribution preferences
- Tax and financial records are readily available
Business valuation services for holding entities
CliftonLarsonAllen’s valuation professionals are qualified appraisers as defined by the IRS, and are either accredited in business valuation (ABV), the American Society of Appraisers (ASA), or both. Our valuation credentials underpin a larger story: We provide valuations for gift tax purposes for businesses nationally, and can support you with a cost effective valuation that meets the stringent IRS requirements.
We can evaluate your situation before work begins and provide an honest assessment of whether a valuation review will work for your entity.
*We reserve the right to review the information of a client to so that it falls within these guidelines and characteristics prior to taking on the project.