Opportunities in Gift and Estate Planning
The short-lived rules of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the Act), which expire on December 31, 2012,include an estate tax exemption of $5.0 million with a 35% tax rate.
The question arises: what will happen to the estate tax in 2012? Congress could:
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Do nothing, which would result in reversion to a $1.0 million estate tax exemption and an estate tax rate of 55%
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Extend the current tax law, which would increase the exemption, indexed for inflation, to $5.12 million with a 35% tax rate
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Pass a compromise bill, which could result in a lower estate tax exemption and higher estate tax rate
With today’s lower asset values and interest rates, families and individuals can move wealth out of taxable estates – but they must do so prior to December 31, 2012.
The IRS will be keeping a close eye on gift and estate tax plans and corporate donations. Compliance with the adequate disclosure regulations of 1999 is paramount; failure to do so can result in an audit window that never closes. In addition, the 2006 addition of §170 (f)(11)(E) to the Tax Code imposes standards on opinions of value, and noncompliance with these standards can result in time-consuming IRS challenges and costly penalties.
Opportunities for Corporate Noncash Charitable Contributions/Donations
Donation of a noncash asset requires a qualified appraisal. Under §170 (f)(11)(C), taxpayers are required to obtain a qualified appraisal for donated property for which a deduction of more than $5,000 is claimed.
What We Do
Our valuation services related to the transfer of family wealth and noncash charitable contributions/donations include:
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Valuation of closely held stock, including common, preferred and convertible-preferred
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Discount studies, including but not limited to, lack of control, lack of marketability and built-in capital gains
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Control premium studies
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Valuation of intellectual property (trademarks, copyrights, patents, contracts, technology and more)
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Real and personal property valuation
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Testing asset transfers to ensure that the transferor has received fair and adequate compensation for the property rights given up
Why American Appraisal?
Now, more than ever, families and corporations, and their tax advisors, need to engage qualified and trustworthy valuation professionals. With more than 50 years of providing valuation services related to gift and estate tax planning, American Appraisal has the expertise you require.
Our independence of audit or other attest services, rating agencies and investment banks makes us thoroughly objective; we have no conflicts of interest. We are a “Qualified Appraiser” as defined by the IRS, and we provide well-supported analyses that withstand IRS and judicial scrutiny.
Our consultants have the experience needed to value all types of company stock, tangible assets and intangible property that may be transferred or donated to a trust, Family Limited Partnership, charitable organization or other form of business or business entity.