Estate and Gift Tax Planning and Reporting
Estate and Gift Tax Planning and Reporting
At Chaffe, our experienced valuation team will work with you to provide a meticulous qualified appraisal for your estate planning and gift tax return needs.
What is a “Qualified Appraisal”?
- Qualified Appraisal:
A qualified appraisal is an appraisal document prepared and signed by a qualified appraiser in accordance with generally accepted appraisal standards, which includes the substance and principles of the Uniform Standards of Professional Appraisal Practice (“USPAP”). - Qualified Appraiser:
A qualified appraiser is “an individual who (I) has earned an appraisal designation from a recognized professional appraiser organization or has otherwise met minimum education and experience requirements set forth in regulations, (II) regularly performs appraisals for which the individual receives compensation, and (III) meets such other requirements as may be prescribed… in regulations or other guidance.”
When are qualified appraisals needed?
- Charitable donations of privately held interests:
For income tax reporting, when claiming a charitable contributions in excess of $5,000, a qualified appraisal is necessary to substantiate the non-cash reported fair market value of non-publicly traded securities including privately-held stock and interests in limited liability companies and partnerships. - Estate and Gift Tax:
The IRS’ official guidance for filing estate and gift tax returns requires “a fair appraisal as of the applicable valuation date of all the assets of a business, tangible and intangible, including goodwill… complete financial and other data upon which the valuation is based should be submitted with the return, including copies of reports of examinations of the business made by accountants, engineers, or any technical experts as of or near the applicable valuation date.” A “qualified appraisal,” will likely meet IRS requirements.
Discretion and Respect
Valuing equity and other securities of privately held companies in connection with transactions among family members may be necessary to verify that the pricing in the transaction is fair market value.No matter the situation, Chaffe prides itself on its discretion and confidentiality. Many of our assignments entail personal as well as business issues and have significant financial consequences. We are sensitive to these issues and make every effort to treat all parties involved with the highest degree of care and respect.
Experience and knowledge you can trust
Our professionals have designations from the leading accrediting organizations including, Accredited Senior Appraiser by the American Society of Appraisers, Chartered Financial Analyst by the CFA Institute, and Accredited in Business Valuation by the American Institute of Certified Public Accountants. The professionals also attend conferences, review court decisions, and interact with our mergers and acquisitions department to keep current on tax changes, market conditions, and valuation theory.Chaffe’s analysis and reports follow Internal Revenue Service’s Revenue Rulings 59-60 and 65-192, the American Institute of Certified Public Accountants’ Statement on Standards for Valuation Services 1, and the Uniform Standards of Professional Appraisal Practice (“USPAP”) promulgated by the Appraisal Foundation, the Business Valuation Standards.
Estate Planning & Tax Reporting Services
Chaffe’s estate planning and estate and gift tax reporting services include:- Determination of fair market value to complete forms 706 and 709
- Stock redemptions
- Exit planning
- Restricted stock (Rule 144)
- Stock Options (409A)
- Buy-Sell agreements
- Valuation of partnership and L.L.C. interests
- Recapitalization of voting and non-voting shares
- Intrafamily sales and other transfers
- Valuation of debt, preferred stock and other securities
- Charitable contributions of privately held securities
- S corporation conversions and establishment of tax basis
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