IRS-compliant business valuations for estate administration, gift tax reporting, and wealth transfer planning — supporting high-net-worth families, executors, trustees, and their advisors across Southern California.
Request a ConsultationBusiness interests are among the most complex assets in any estate or gift tax context. Unlike publicly traded securities, there is no readily observable market price — the value must be determined through a formal appraisal process, and the conclusions must satisfy the IRS's qualified appraisal requirements under Treasury Regulation §20.2031-1 and related guidance.
For high-net-worth families with significant business holdings, the stakes are substantial. An unsupported or poorly documented valuation invites IRS scrutiny, penalties for substantial valuation misstatements, and potential litigation. A rigorous, well-documented appraisal — prepared by credentialed professionals and built on defensible methodology — is not just a compliance obligation; it is a meaningful component of tax and wealth transfer planning.
LA Valuations works directly with estate attorneys, trust and estate CPAs, wealth managers, and family offices to provide business valuations that meet IRS requirements, integrate with the broader planning strategy, and hold up to examination.
Valuations of closely held business interests for inclusion in a decedent's gross estate. Our reports comply with the qualified appraisal requirements of IRC §2031 and the Treasury Regulations, are prepared under USPAP standards, and are structured to withstand IRS examination — including designation as an independent qualified appraisal for penalty protection purposes.
Valuations of interests being transferred by gift to family members, trusts, or other recipients. Whether the gift is part of an annual exclusion program, a large lifetime exemption gift, or a transfer in trust, our report supports the return as a qualified appraisal and provides a defensible FMV conclusion.
Family limited partnerships (FLPs) and family LLCs are widely used in estate planning to achieve discounts from the underlying asset value for estate and gift tax purposes. Valuing interests in these entities requires a thorough analysis of the applicable discount factors — which are frequently contested by the IRS — and a well-documented report that supports the chosen discount level.
A buy-sell agreement that is not regularly updated with current-value appraisals may not be respected by the IRS as fixing the estate tax value of the business interest under IRC §2703. We provide periodic valuations to keep buy-sell agreements compliant and reflective of current market conditions.
A current, credentialed business valuation is the foundation of any effective succession plan. Without knowing what the business is actually worth — and how that value is likely to change — it is impossible to design an optimal transfer strategy, properly fund life insurance, or fairly address the interests of both in-business and out-of-business heirs.
Discount studies are standalone analyses focused specifically on determining appropriate discounts for lack of control and lack of marketability for a given entity — used in planning, gifting, and annual update contexts where a full valuation is not required.
We work on a confidential basis with estate attorneys, CPAs, wealth managers, and families throughout Southern California. Contact us to discuss your needs.
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