How Discounts can Lower the Taxable Value of Your Business for Estate Planning

Business appraisers as part of valuation standards and accepted practices will often use applicable discounts in valuing privately held businesses. The identified value for equity interests as part of the overall estate are what the IRS use to determine the proper taxation. Meaning all else equal, if discounts are correctly applied to the said equity […]

discount for lack of marketeability calculation

Discount For Lack of Marketability

The term “discount for lack of marketability” is often referred to, but it isn’t always fully understood. Markets in which public and private equity stakes (i.e., companies) can be negotiated are not exactly the same; the trading conditions are substantially different, especially in terms of marketability (liquidity). This can and often does have a significant impact on […]