Estate & Gift Tax Valuation

For tax compliance purposes, business interests must be valued when transferred as a gift or as part of an estate. In this context, the recognized standard of value is “fair market value,” defined as the theoretical amount at which the property would change hands between a willing buyer and a seller, where both parties have reasonable knowledge of the relevant facts.

In addition to other valuation standards, our valuation reports meet the valuation guidelines established under Revenue Ruling 59-60 for gift and estate tax purposes, and always apply commonly accepted valuation methodologies based on reasonable, sustainable assumptions.

Valuations of minority interests in closely held family limited partnerships (“FLPs”) or limited liability companies (“LLCs”) are often intended to support significant discounts for lack of control and marketability.  These discounts, however, are regularly challenged by the IRS.  In order to minimize these challenges, a professionally prepared, well-substantiated valuation is essential.

Business valuation services we offer include:

  • Whole or Minority Ownership Interests in investment holding companies
  • Whole or Minority Ownership Interests in real estate holding companies
  • Whole or Minority Ownership Interests in closely held businesses
  • Fractional Interests in Real Property
  • Hedge Fund & Private Equity Fund Management & Carried Interests
  • Profit Interests
  • Valuation for Estate Tax Litigation
  • Litigation / Negotiation Support

When gifting interests in a company, a comprehensive, well-supported business valuation is essential.  At Sigma Valuation Consulting, our professionals work closely with each client’s advisors to provide thoroughly documented and supportable valuation analyses that stand the test of time.