This overview can help you learn more about IRS Revenue Ruling 59-60, which is regarded as the foundation of modern business valuation. The ruling outlines and reviews the approach, methods and factors to be considered in valuing the shares of the capital stock of closely...
The Tax Cuts and Jobs Act of 2017 expanded the federal estate and gift tax exemption to $11.2 million per person, or $22.4 million for a married couple. Under the Act, these higher limits are applicable through December 31, 2025. On January 1, 2026 the...
Your business represents a big part of your wealth. Here's why you need to protect it with a succession plan, so that you can ensure the business retains its value after you're gone. ...
I frequently receive requests to quickly value a business by applying a “rule of thumb”, that is, application of a simple formula to the gross or net income of a business to determine its value. That's a bad idea - this post explains why....
According to several national surveys of closely held business owners, approximately three in five do not have any business succession plan in place. At KRS, we specialize in advising owners of family and closely held businesses and our observations are consistent with the survey results....
Managing a family business presents unique challenges not faced by businesses owned and operated by unrelated individuals. If not addressed, family issues can divide the family and damage or destroy the business. This post discusses some of the considerations important to ensuring the success of a...
In this article originally published in the New Jersey Law Journal, authors Gerald Shanker and Alan Pralgever discuss why, in their view, the New Jersey Supreme Court's position on "double dipping" in matrimonial cases is simply not economically fair, justified or sustainable, and should be...
Do the valuation provisions of your shareholder or partnership agreement specify a standard of value? If they do, is the standard of value “fair value”, “fair market value”, or something else? If the standard of value is not fair value or fair market...
As we approach the end of the third quarter, it is time to review your 2016 budgets and projections and compare them to the actual operating results. Is the business ahead of or trailing the projections? What parts of the business performed well...
Recently, the Treasury issued proposed regulations which, if adopted, would severely limit taxpayers’ ability to receive tax benefits for wealth transfers to family limited partnerships. This post discusses why you should act now if you have a federally taxable estate and are considering wealth transfers....
