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Gibraltar Business Valuations Testifies Before Treasury Department

Chris Treharne before the Treasury Department

Chris Treharne of Gibraltar Business Valuations recently testified before the Treasury Department regarding an IRS regulation that may dramatically reduce the ability to apply valuation discounts to intra-family transfers of interest for corporations, partnerships, or LLCs. Simply put, such regulations would place significant restrictions on the lack of control discounts in valuing interests, and may have an effect on marketability discounts. Individuals who own businesses with family members as minority interests fear that the regulations may impede on future business plans.

Threatening the Hard Work of Local Business Owners

Client of Gibraltar Business Valuations Testifying

The regulation is placed under Section 2704, which was implemented more than 20 years ago in an effort to limit discounts for certain family partnerships or LLC interests that are transferred to family members. Testifying alongside Chris Treharne was a client of Gibraltar Business Valuations, who started a family-operated motel business in 1962 and has since then brought her children aboard her business venture.

In her testimony, she argues that the IRS’s application of family attribution could result in her minority interests – her three children, herself, her husband, and her trusts – being valued as if they were controlling. Under the regulation, these interests would potentially face estate tax increases her descendants would be unable to pay, unless they sold the business. While the proposed regulations are not effective immediately, they do apply to transfers made after the regulations are finalized.

Contact us to read a copy of the full testimony.

At Gibraltar Business Valuations, our motto is “Passion for Valuation.” We have a passion for what we do and making sure our clients receive unparalleled service in all of their business valuation matters. If you have questions regarding the value of your business, we invite you to contact our Denver & Chicago business appraisal experts today.

Call (855) 231-1401 to request your case evaluation today.

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