Gift & Estate Tax Valuation
Certified Business Valuation Services for Gift & Estate Tax Compliance
At Transaction Capital LLC (also known as TXN Capital LLC), we understand the critical role of certified business valuations in tax reporting, wealth transfer, and IRS compliance.
As one of the top business valuation firms in the United States, our team includes ASA, ABV, and CVA-certified professionals dedicated to delivering valuations that meet the most rigorous regulatory standards.
We specialize in independent Fair Market Value (FMV) assessments for gift and estate tax planning, ensuring accurate, IRS-compliant valuations of business interests and other assets. Whether you’re setting compliant strike prices for equity compensation or preparing for wealth transfers, our valuations are designed to stand up to scrutiny from the IRS, SEC, investors, and auditors.
Our proven approach helps clients:
- Minimize tax liabilities and avoid costly penalties
- Enhance investor confidence during fundraising
- Navigate complex reporting requirements with clarity
Years of Experience
Successful Projects
Gift and Estate Tax Valuation & Calculation Services
Why Choose Transaction Capital LLC?
Key Valuation Elements for Gift and Estate Tax
- IRS Guidance
Our valuations comply with IRS Revenue Ruling 59-60, taking into account:
- The nature and history of the business
- Economic and industry conditions
- Financial condition and earning capacity
- Goodwill and intangible asset considerations
- Market prices of comparable companies
- Approaches to Value
We utilize multiple approaches to ensure accuracy and defensibility:
- Income Approach: Discounted Cash Flow (DCF) analysis
- Market Approach: Guideline public company and transaction multiples
- Asset Approach: Book value assessments and net asset evaluations
- Comprehensive Narrative Reports
We provide detailed reports that include:
- Valuation assumptions and methodologies
- Documentation of all key factors under Revenue Ruling 59-60
Valuation Discounts
We apply appropriate discounts to reflect:
- Lack of Control: Limited ability to influence decisions
- Lack of Marketability: Reduced liquidity of privately held interests
- Tailored Analysis
Our valuations are customized to your business’s unique features, with collaborative discussions to achieve precise, defendable outcomes.
How to Choose Top Estate and Gift Tax Valuation Firms
Reputation
Certifications
Experience
Custom Solutions
Regulatory Knowledge
Methodological Strength
Industry Specialization
Differences Between 409A and Gift & Estate Tax Valuations
| Aspect | 409A Valuations | Gift & Estate Tax Valuations |
|---|---|---|
| Purpose | Income tax compliance and setting option strike prices | Wealth transfer planning and reporting fair market value for tax filings |
| Valuation Factors | Considers stock restrictions and IRC Section 409A guidelines | Adheres to IRS Revenue Ruling 59-60 and relevant tax court precedents |
| Discount Applications | Discount rates reflect liquidity and transfer restrictions for compensation purposes | Discount rates account for lack of control and marketability in estate and gift contexts |
Additional Specialized Valuation Services
- SBA 7(a) Valuation
Appraisals compliant with SBA loan underwriting and guarantee requirements. - Complex Valuation Engagements
Addressing intricate valuation needs with specialized expertise. - Financial Reporting Valuation
Customized valuations to meet GAAP and IFRS financial reporting standards.
- ASC 805 & ASC 820 Valuations
Fair value measurements for business combinations and financial reporting. - ESOP Valuation
Independent valuations for Employee Stock Ownership Plans to ensure fairness and compliance.
