Are Your Gift and Sale Transactions at Risk - -
Because You Have No Idea What’s In (Or Should Be In)
Lots of professionals and their clients are taking advantage of the new, limited time $5 million exemption to make gifts and sales of assets.
Larger transactions often employ sophisticated techniques to help assure the $5 million exemption won’t be exceeded, like SCIN-GRATs and defined value transfers.
But professionals are too often overlooking the real source of IRS audit risk - - and the potential for gift tax, interest and penalties, and a possible malpractice lawsuit - - the appraisal, particularly a business appraisal.
By “business”, we’re including not only “active” trades or businesses, but also more passive types of businesses, like rental real estate, that may be owned in an FLP, LLC or other entity.
If your clients are making substantial gifts or sales, you can’t afford to just “take the appraiser’s word for it” when planning the transaction and later filing the 709.
You need to know:
- Why it’s critical to review draft valuation reports
- The fine line between suggestions and report writing
- The 10 “Burning Issues” in the appraisal that you, as a non-appraiser, should look for
- A checklist of questions to ask the appraiser (not just the amount of the valuation discount!)
If you’re a CPA, estate planning attorney or other professional who is involved with advanced level estate tax planning for high net-worth clients, you should definitely participate in our program, “The Burning Issues that Impact Business Appraisers”.