Resource Center

by Jeramie Fortenberry, JD, LLM (Taxation) | Executive Editor, WealthCounsel

On August 4, 2016, the Treasury Department issued Proposed Regulations on valuation discounts for family-owned businesses under §2704 of the Internal Revenue Code that eliminate almost all valuation discounts. These proposed changes will significantly impact planning strategies for clients. Your family-owned business clients should take action by year end if they want to achieve valuation discounts under the current rules.

Download this Thought Paper for in-depth analysis of the proposed changes and practical takeaways to help your clients navigate the new rules, including:

  • Clarifications about LLCs and other entities that are not corporations or partnerships
  • Restrictions on deathbed transfers that result in lapse of liquidation rights and clarification of treatment of assignee interests
  • Changes to Treasury regulations regarding liquidation restrictions under §2704(b)
  • Changes to the definition of applicable restriction to eliminate comparison to the liquidation limitations of state law
  • New disregarded rescissions on transfer of individual interests
  • Effect of insubstantial ownership of non-family members