Gift and Estate Tax Valuations

The aggregate lifetime exemption for federal gift and estate taxes was $5.49 million for tax year 2017.  With the passage of the Tax Cut and Jobs Act in December 2017, the exemption was increased to $11.2 million beginning in tax year 2018.  However, Congress included a sunset provision which results in the exemption reverting to the tax year 2017 limit (adjusted for inflation) after tax year 2025.

The Internal Revenue Service refers to the combined exemption as a “unified credit” since any amount used for gifting reduces the available amount for estate tax purposes.  However, a surviving spouse may use any unused exemption from a deceased spouse.

There is a clear incentive for owners of closely held businesses and high net worth investors to implement careful estate tax planning to minimize federal estate and gift taxes, as well as state inheritance taxes.  Other critical objectives include providing for liquidity and business continuity to the next generation.

Our appraisals have been a valuable asset in assisting business owners and other investors with their planning and reporting compliance and include:

• Valuations of noncontrolling interests in closely held corporations, limited partnerships and limited liability companies for gifting purposes.

• Valuations of controlling and noncontrolling interests in closely held businesses for estate administration.

• Valuations of restricted stock and other illiquid investment securities.

Income Tax Valuations

With respect to income tax planning and compliance, PDR Valuation has been very active in providing qualified appraisals of non-publicly traded securities that meet information guidelines of the Internal Revenue Service related to noncash charitable contributions.

PDR Valuation Advisors, Inc.

3681 West Brandon Way
Doylestown, PA 18902
Telephone: (215) 489-5008
pdrvaluation@comcast.net