How the New Tax Law Will Affect Business Valuations

William P. Allen, CPA/ABV, CFE

The Tax Cuts and Jobs Act is expected to have far-reaching effects that will vary significantly from company to company. In general, the new law lowers business tax rates. But it also reduces or eliminates various business tax breaks, while expanding others, either permanently or temporarily. Here's a brief summary of the changes and how they affect the process of valuing a private business interest.

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Court Issues Failed IPO Price to Value Minority Interest

Douglas P. Sosnowski, CPA/ABV, ASA, CFF

Courts prefer objective valuation evidence over subjective assumptions and predictions. But, when valuing a startup business with unproven intangible assets in a volatile market, objective data can be hard to find. Here's how the courts in Arizona found a way to handle a recent shareholder dispute that involved widely divergent expert opinions.

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IRS Withdraws Proposal to Curb the Use of FLPs

Louis J. Cercone, Jr., CPA, CFE, CFF, ABV, ASA, CVA

The Treasury Department finally abandoned its controversial proposed regulations on liquidation restrictions for gift, estate, and generation-skipping transfer taxes. This is a major victory for family businesses. Here's why the proposal was withdrawn and how estate planning might change under the GOP tax reform framework. This article also provides some best practices for the continued use of family limited partnerships and other family-controlled entities.


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Financial Experts Facilitate Business Interruption Claims

Louis J. Cercone, CPA, CFE, CFF, ABV, ASA, CVA

Assets transferred to a limited partnership in an effort to remove them from an estate were, in fact, included in the value of that estate, the U.S. Tax Court ruled in one case. The reason: The deceased woman retained her rights related to the assets until her death and the transfer was made less than three years before her death.

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