Gift & Estate Tax Valuation Explained: How to Value Assets for IRS Compliance

Transferring wealth through gifts or an estate is one of the most consequential financial decisions a person makes. But the IRS does not leave the valuation of that wealth to guesswork – it mandates rigorous, defensible appraisals for every significant transfer.

Whether your goal is reducing tax exposure, distributing assets fairly among heirs, or satisfying federal reporting obligations, accurate asset valuation sits at the center of every successful plan. Non-compliance opens the door to audits, penalties, and disputes that can unravel years of planning.

Transaction Capital LLC has prepared this guide to demystify the gift and estate tax valuation process. We cover Fair Market Value standards, accepted methodologies, current IRS requirements including the landmark 2025 OBBBA update, and practical strategies to protect your legacy.

Understanding the Three Types of Transfer Taxes

Three distinct federal and state taxes can apply when assets change hands. Each operates differently, and understanding all three is the starting point for smart wealth transfer planning.

1. Gift Tax

Gift tax is a federal levy on asset transfers made during your lifetime where you receive little or nothing in return. Congress created it specifically to prevent wealthy individuals from sidestepping estate taxes by distributing assets before death.

Key 2026 figures:

• Annual exclusion: $19,000 per recipient (increased from $18,000 in 2025)
  
• Married couples giving jointly: $38,000 per recipient
  
• Gifts above the annual exclusion reduce your lifetime exemption
  
• Lifetime exemption: $15 million per individual under the OBBBA (effective January 1, 2026)
  

2. Estate Tax

Estate tax is imposed at the federal level on the total value of property transferred at death. It applies only when the estate’s gross value surpasses the federal exemption threshold.

Key 2026 figures:

• Federal exemption: $15 million per individual ($30 million combined for married couples with portability)
  
• Tax rates on amounts above the exemption: 18% to 40%
  
• Covers all asset classes: real estate, securities, business interests, and personal property
  

3. Inheritance Tax

Unlike estate tax – which is paid by the estate itself – inheritance tax is a state-level obligation paid by the individual receiving assets. Not every state imposes it, and rates vary considerably based on the beneficiary relationship to the deceased (typically 10%-18%). Spouses are generally exempt.

2026 Update – OBBBA: The One Big Beautiful Bill Act, signed into law on July 4, 2025, permanently increased the federal estate, gift, and generation-skipping transfer (GST) tax exemption to $15 million per person beginning January 1, 2026, indexed for inflation from 2027 onward. The previously feared “sunset” that would have halved exemptions to approximately $7 million has been eliminated. Planning is still critically important – but the urgency now comes from strategic growth and income tax considerations, not from a deadline-driven exemption cliff.

Why Estate and Gift Tax Valuation Matters

Gift and estate tax valuations establish the Fair Market Value (FMV) of assets now of transfer. The IRS defines FMV as the amount a knowledgeable buyer would pay an informed seller, with neither party under pressure nor both possessing awareness of all material facts.

This standard exists to prevent both the inflation and deflation of reported asset values. Report too high, and you pay unnecessary taxes. Report too low, and you risk substantial penalties and interest.

Consequences of inaccurate valuations include:

• IRS examinations contesting your reported figures
  
• Financial penalties and accrued interest for valuation misstatements
  
• Loss of advantages within GRATs, FLPs, or other planning structures
  
• Extended audit windows (indefinite when disclosure is incomplete)
  
• Costly litigation defending a poorly documented appraisal
  

Professional valuation from credentialed experts does more than generate a number – it creates a legal shield protecting your wealth transfer strategy. Transaction Capital LLC’s ABV® and ASA certified appraisers deliver reports built to withstand scrutiny from regulators, auditors, and courts alike.

Why Business Owners Need Gift and Estate Tax Valuation

For owners of privately held companies, the valuation stakes are even higher. Business interests represent some of the most complex and most scrutinized assets in any estate.

1. Maximize Tax Savings

Valuing business interests correctly opens the door to legitimate ownership discounts – reductions in taxable value reflecting real-world ownership limitations. Minority interest discounts, lack-of-marketability discounts, and lack-of-control adjustments can collectively reduce taxable transfer values by 20%-40%, allowing significantly more wealth to pass tax-free.

2. Strategic Succession Planning

Gifting business interests while the company is growing transfers for future appreciation outside your taxable estate. Today’s valuation becomes the baseline; tomorrow’s growth belongs to your heirs, not the IRS. This strategy is particularly powerful for businesses experiencing rapid expansion.

3. Equal Distribution Among Heirs

Professional valuation creates an objective foundation for dividing assets fairly. When one heir receives business equity and another receives cash or real property, a credible appraisal prevents the resentment and litigation that often follow subjective distributions.

4. Business Continuity

Valuation facilitates planned ownership transitions – whether to family members, key employees, or co-owners. Owners can maintain operational control while gradually transferring economic interests on a structured, tax-efficient timeline.

5. Audit Protection

The IRS subject’s business interests on estate tax returns to elevated scrutiny. Comprehensive, well-documented valuations are your primary defense when examiners challenge reported figures.

The Critical Importance of IRS Compliance

The IRS reviews valuations attached to Form 706 (Estate Tax Return) and Form 709 (Gift Tax Return) with rigor. Both forms require appraisals prepared by qualified, independent professionals adhering to established frameworks:

• Revenue Ruling 59-60 – the IRS’s foundational guidance for private business valuation
  
• AICPA SSVS No. 1 – professional standards from the American Institute of CPAs
  
• USPAP – Uniform Standards of Professional Appraisal Practice
  
• IVS – International Valuation Standards
  

A properly disclosed appraisal activates a three-year statute of limitations, protecting your return from indefinite IRS re-examination. Inadequate disclosure removes this protection entirely, leaving your filing perpetually vulnerable to challenge.

Revenue Ruling 59-60: The Foundation

Established in 1959, Revenue Ruling 59-60 remains the cornerstone of private business valuation for federal gift and estate tax purposes. Every compliant report must systematically address eight core factors:

1. Nature and history of the business – origin, evolution, and industry position
   
2. Economic outlook – macroeconomic and sector-specific conditions
   
3. Book value and financial position – balance sheet strength and asset composition
   
4. Earning capacity – historical and projected profitability
   
5. Dividend-paying capacity – past payments and future sustainability
   
6. Goodwill and intangible value – brand, customer relationships, intellectual property
   
7. Prior stock transactions – recent arm’s-length equity sales
   
8. Comparable public companies – market benchmarking against similar enterprises
   

IRS-compliant reports trace the connection between each factor, the evidence gathered, and the final value conclusion with full transparency.

Transaction Capital LLC’s appraisers document every consideration rigorously, producing reports specifically engineered to withstand regulatory challenges.

Key Factors Affecting Gift and Estate Tax Valuation

Multiple ownership and market characteristics influence how a private asset is valued for transfer of tax purposes.

1. Degree of Control

The rights attached to your ownership interest directly affect its value. The ability to sell assets, declare dividends, or influence strategic direction commands a premium. Minority interests lacking these rights typically receive control discounts.

2. Marketability Considerations

Private company shares cannot be liquidated as easily as publicly traded securities. This illiquidity is measurable and justifies a discount for lack of marketability (DLOM), reducing the taxable value of transferred interests.

3. Relative Size and Ownership Concentration

Larger ownership blocks may warrant control premiums; smaller blocks receive minority discounts. The distribution of ownership among other shareholders also affects the practical significance of any given interest.

4. Family Attribution Rules

When family members collectively hold a controlling interest, the IRS may apply attribution rules that aggregate those holdings for control analysis. This can affect discount calculations significantly.

5. Capital Gains Tax Liabilities

Appreciated assets held inside a company carry embedded tax liabilities triggered upon eventual sale. These built-in gains may justify additional valuation reductions, reflecting the real economic cost to a hypothetical buyer.

6. Restrictions and Buy-Sell Agreements

Contractual transfer restrictions affect value by limiting the pool of eligible buyers or capping exit prices. For these restrictions to receive IRS recognition, they must reflect arm’s length negotiation.

Fair Market Value vs. Other Value Standards

Not every appraisal meets IRS requirements for gift and estate tax filings. A 409A valuation prepared for employee stock option pricing satisfies IRC Section 409A – but it does not satisfy IRC Sections 2031 and 2512 governing transfer taxes. The same applies to financial reporting appraisals prepared for ASC 805 or ASC 820 compliance.

Criteria	409A Valuation	Estate & Gift Tax Valuation
Primary Purpose	Stock option strike price	Tax compliance for asset transfers
Value Standard	Fair Value (common stock)	Fair Market Value (all interests)
Discount Application	Standardized assumptions	Customized, empirically supported (DLOC/DLOM)
Governing Code	IRC Section 409A	IRC Sections 2031 & 2512
IRS Scrutiny	Lower (safe harbor protection)	High examination potential

Submitting the wrong report type can invalidate your entire tax filing – and forfeit the statute of limitations protection you need. Always engage a firm that prepares valuations specifically structured for Form 706 or Form 709 compliance.

IRS Guidance on Post-Valuation Events

In 2021, the IRS issued Chief Counsel Advice CCA 202152018, which fundamentally changed how appraisers must treat post-valuation events. The memorandum established that pending or foreseeable transactions – including acquisition offers, merger negotiations, or investment banking engagements – are “known or knowable” facts that must be incorporated into the FMV determination.

Practical implications:

• Obtain appraisals that reflect all circumstances existing on the transfer date
  
• Document any pending transactions, even those that close after the valuation date
  
• Maintain value consistency across gift, estate, and charitable deduction filings
  
• Ignoring known offers or negotiations may constitute underreporting, triggering penalties
  

This guidance reinforces a core principle: IRS compliance requires complete situational awareness, not just technical modeling.

Core Valuation Approaches for IRS Compliance

Credentialed appraisers apply three recognized methodologies. The appropriate approach – or combination of approaches – depends on the asset’s income profile, market comparables, and balance sheet composition.

1. The Income Approach

This method converts a business’s future economic benefits into present value using risk-adjusted discount rates.

Common techniques:

• Discounted Cash Flow (DCF): Projects free cash flows over a forecast period and discounts them at the Weighted Average Cost of Capital (WACC)
  
• Capitalization of Earnings: Normalizes a single period’s earnings and divides by an appropriate capitalization rate
  

Example: If normalized earnings are $500,000, the discount rate is 15%, and long-term growth is 3%, the indicated value equals $500,000 ÷ (0.15 − 0.03) = $4,166,667

Best applied to businesses with predictable revenue streams and defensible growth assumptions.

2. The Market Approach

This method benchmarks value against comparable public companies or recent M&A transactions.

Common multiples:

• Enterprise Value-to-EBITDA
  
• Price-to-Earnings (P/E)
  
• Revenue multiples
  

Example: A company with $1,000,000 EBITDA and a peer group of 6x indicates a baseline value of $6,000,000 – before applying ownership discounts.

Appraisers adjust for differences in size, growth rate, profitability, and control characteristics, providing objective market-anchored evidence.

3. The Asset (Cost) Approach

This method adjusts individual assets and liabilities to their fair market values.

Item	Amount
Land	$300,000
Building (replacement cost)	$1,500,000
Less: Depreciation	($150,000)
Equipment (fair value)	$200,000
Less: Liabilities	($350,000)
Net Asset Value	$1,500,000

Best suited for capital-intensive businesses, early-stage ventures, or liquidation scenarios. Professional reports typically employ multiple approaches and reconcile findings with transparent weighting rationale.

Applying Valuation Discounts

Ownership discounts reflect genuine economic limitations – they are not arbitrary reductions. The IRS demands rigorous, data-supported justification for every discount applied.

Discount for Lack of Control (DLOC)

Minority owners without the power to direct dividends, strategy, or asset sales hold fewer valuable interests than controlling shareholders. DLOC typically ranges from 5%-25%, supported by control of premium studies and shareholder agreement analysis.

Example: A 20% minority interest in a $5,000,000 company might carry an indicated pre-discount value of $1,000,000. After a 20% DLOC, the adjusted value becomes $800,000.

Discount for Lack of Marketability (DLOM)

Private company interests cannot be easily converted to cash. DLOM reflects this illiquidity compared to freely traded public securities. Empirical support comes from restricted stock studies, pre-IPO transaction databases, and quantitative option-pricing models.

Discounts typically range from 20%-40% depending on company-specific conditions.

Example: Applying a 30% DLOM to the $800,000 post-DLOC value yields a final indicated value of $560,000 – a substantial reduction from the pro-rata enterprise value.

Additional Discounts

• Key-Person Discounts: When the business depends heavily on a single individual
  
• Built-In Capital Gains Discounts: For embedded tax liabilities on appreciated assets
  
• Voting vs. Non-Voting Adjustments: Reflecting the economic difference between equity classes
  
• Future Interest Discounts: For trust structures where beneficiary interests vest later
  

Transaction Capital LLC Supports every discount with published empirical studies, transaction databases, and quantitative models – providing the documentation the IRS demands.

Estate Valuation Requirements for Form 706

Estates exceeding the federal exemption ($15 million per individual in 2026 under the OBBBA) require filing Form 706 with the IRS.

Filing Requirements

Form 706 is required when:

• The gross estate exceeds the applicable exemption amount
  
• The decedent made certain taxable gifts during life
  
• The executor wants to elect portability of unused exemption to a surviving spouse
  

Valuation Date Options

1. Date of Death (Primary Date)

Most estates value all assets as of the exact moment of death. This is the default method and simplifies subsequent administration.

2. Alternate Valuation Date

An executor may elect to value assets six months after death – but only if doing so reduces both the gross estate value and the resulting estate tax liability. The election is irrevocable once made and is most useful when asset values have declined following death.

Essential reporting considerations:

• Every asset class requires a separate FMV appraisal
  
• Closely held business interests demand detailed earnings normalization
  
• All discount justifications must be comprehensive and empirically supported
  
• Charitable bequests and marital deductions require supporting valuations
  
• Consistency across all related submissions is non-negotiable
  

Gift Valuation Requirements for Form 709

Gifts exceeding the 2026 annual exclusion of $19,000 per recipient require a Form 709 filing. This includes gifts of future interests regardless of amount, and gifts of closely held business interests.

When to File Form 709

Filing is required when:

• Any single recipient receives more than $19,000 in 2026
  
• Spouses elect gift-splitting
  
• The gift involves a future interest in any amount
  
• Business interests are transferred
  

Adequate Disclosure Requirements

To activate the three-year statute of limitations, Form 709 must include:

• A qualified appraisal bearing a credentialed appraiser’s signature
  
• A complete description of the transferred property
  
• A clear explanation of the methodology applied
  
• The specific valuation date
  
• Full disclosure of any restrictive provisions or special terms
  

Many taxpayers mistakenly submit outdated 409A reports for gift tax filings. These are unacceptable – they address different value standards under different regulatory frameworks and provide no statute of limitations of protection.

Transaction Capital LLC prepares gift tax valuations specifically structured for Form 709 compliance.

Strategies to Reduce Gift and Estate Tax Burden

Under the OBBBA’s permanent $15 million exemption, strategic wealth transfer planning remains essential – particularly for high-growth businesses and larger estates. The focus shifts from deadline-driven urgency to thoughtful, long-term optimization.

1. Annual Exclusion Strategy

Systematic use of the $19,000 annual exclusion (2026) compounds powerfully over time.

Example: A couple with three adult children and six grandchildren can transfer $342,000 annually ($19,000 × 9 recipients × 2 spouses) without touching their lifetime exemption. Over 10 years: $3.42 million transferred tax-free.

2. Lifetime Exemption Planning

With the $15 million permanent exemption, the strategic focus shifts to removing appreciating assets – particularly growing businesses – from your estate now, so future growth accumulates outside the taxable estate rather than inside it.

3. Charitable Giving

Charitable transfers provide multiple simultaneous benefits:

• Remove assets from the taxable estate
  
• Generate an income tax deduction in the year of contribution
  
• No gift tax on qualifying charitable transfers
  
• Common vehicles: Charitable Remainder Trusts (CRTs), Charitable Lead Trusts (CLTs), and Donor-Advised Funds
  

4. Grantor Retained Annuity Trusts (GRATs)

GRATs allow you to transfer appreciating assets while minimizing gift tax exposure. You receive fixed annuity payments over a defined term; the remaining value passes to beneficiaries. Only the actuarial “remainder interest” constitutes a taxable gift. GRATs remain highly effective under OBBBA rules – the Act made no changes to grantor trust mechanics.

5. Family Limited Partnerships (FLPs)

FLPs permit gifting of limited partnership interests to family members while the grantor retains control as general partner. They combine valuation discounts, centralized management, and liability protection – making them among the most versatile wealth transfer structures available.

6. Irrevocable Life Insurance Trusts (ILITs)

When the trust owns the life insurance policy rather than the insured individual, policy proceeds flow to beneficiaries outside the taxable estate entirely. ILITs are particularly valuable for providing estate liquidity without increasing estate tax exposure.

7. Intentionally Defective Grantor Trusts (IDGTs)

IDGTs “freeze” asset values for estate tax purposes while the grantor continues paying income taxes on trust earnings. Each income tax payment is effectively an additional tax-free gift, accelerating wealth transfer outside the estate.

All strategies require coordinated guidance from credentialed valuation experts and experienced estate planning attorneys.

The Role of Qualified Appraisers

The defensibility of any estate or gift tax filing hinges directly on the credentials of the appraiser who signs it. In IRS examinations and court proceedings, expert qualification is the first line of defense.

Qualified appraisers must:

• Hold recognized professional credentials
  
• Demonstrate verifiable education and direct valuation experience
  
• Possess documented expertise in the specific asset class being valued
  
• Maintain complete independence – no financial interest in the outcome
  
• Comply with USPAP and AICPA professional standards throughout
  

Our reports are prepared for one purpose: to withstand the most demanding regulatory and judicial scrutiny.

Critical Mistakes to Avoid

1. Using outdated appraisals. Values must be determined as of the actual transfer date. Recycling prior reports – even months earlier – invites IRS challenges.

2. Ignoring pending transactions. Any acquisition offer, merger negotiation, or sale engagement known on the valuation date must be reflected in the report, per CCA 202152018.

3. Inconsistent valuations across filings. Reporting different values for the same interest across related submissions is a significant audit trigger.

4. Unsupported discount percentages. Every discount requires empirical evidence. Arbitrary figures – even reasonable-seeming ones – collapse under examination.

5. Inadequate documentation. Missing workpapers, unexplained assumptions, or thin supporting appendices invite extended review.

6. Algorithm-generated reports. Automated valuation models lack the judgment, context, and documented reasoning that IRS standards demand.

7. Related party appraisals. Valuations prepared by someone with a financial interest in the outcome carry no credibility with tax authorities.

8. Value misstatements in either direction. Underreporting triggers accuracy of penalties; overreporting creates unnecessary tax liability.

Transaction Capital LLC’s documentation exceeds IRS requirements at every level – and our audit defense support is included with every engagement.

Transaction Capital LLC’s Valuation Process

Every estate and gift tax appraisal at Transaction Capital LLC follows a rigorous nine-step methodology:

1. Engagement scoping – Clarifying purpose, valuation date, and asset characteristics

2. Data collection – Gathering financial statements, tax returns, shareholder agreements, and projections

3. Industry and economic analysis – Assessing sector trends, competitive dynamics, and macro conditions

4. Valuation modeling – Applying income, market, and asset-based approaches as appropriate

5. Discount analysis – Supporting DLOC and DLOM with published studies and company-specific factors

6. Event documentation – Recording all known or knowable circumstances on the transfer date

7. Approach reconciliation – Comparing multi-method results and determining final FMV

8. Compliance review – Verifying adherence to IRS, USPAP, and AICPA standards

9. Report delivery – Issuing an audit-defensible report bearing credentialed appraiser signatures

The Benefits of Proper Valuation

1. Avoid Penalties and Audits

Accurate, well-documented appraisals materially reduce IRS examination risk. When audits do occur, proper documentation is your most effective defense.

2. Maximize Tax Savings

A credentialed appraiser identifies every legitimate discount and deduction – minimizing transfer of tax liability through legally defensible means.

3. Facilitate Strategic Planning

Understanding precise asset values enables better decisions about when to transfer, which assets to move, how to structure the transfer, and when to initiate business succession.

4. Prevent Family Disputes

Independent professional valuations create a shared factual foundation for asset distribution. Heirs understand why they received what they received, reducing the friction that subjective distributions generate.

5. Ensure Business Continuity

For business owners, credible valuations support smooth leadership transitions. Successors inherit not just the business, but clarity about its value and their responsibilities.

6. Peace of Mind

Knowing your transfer tax filings rest on defensible, professionally prepared appraisals removes a persistent source of compliance anxiety – letting you focus on the people your planning is meant to protect.

Essential Takeaways

• Three taxes may apply to asset transfers: federal gift tax, federal estate tax, and state inheritance tax
  
• The OBBBA permanently set the federal estate and gift tax exemption at $15 million per individual ($30 million married) beginning January 1, 2026
  
• The 2026 annual gift exclusion is $19,000 per recipient ($38,000 for married couples giving jointly)
  
• FMV is the only accepted value standard for Form 706 and Form 709 – other appraisal types do not qualify
  
• Revenue Ruling 59-60 mandates evaluation of eight specific factors in every business valuation
  
• IRS CCA 202152018 requires that pending transactions be incorporated into valuations as of the transfer date
  
• DLOC (5%-25%) and DLOM (20%-40%) can significantly reduce taxable transfer values – but require empirical support
  
• Proper disclosure triggers the three-year statute of limitations; inadequate disclosure leaves your return open indefinitely
  
• GRATs, FLPs, ILITs, and IDGTs remain fully effective planning tools under OBBBA rules
  
• Qualified appraisers must hold recognized credentials (ABV®, ASA, CVA®, MRICS) and maintain independence
  
• Every valuation should be fresh – dated as close to the transfer as possible
  
• Consistency across all related filings is non-negotiable
  

Why Choose Transaction Capital LLC

Transaction Capital LLC is a Delaware-registered valuation firm whose credentialed team holds ABV®, ASA, CVA®, and MRICS designations – the highest professional standards in the valuation field. Our appraisers bring over 15 years of specialized experience and have completed 2,500+ valuations across more than 35 industries.

Our services include IRS-defensible estate and gift tax valuations meeting all disclosure requirements, empirically supported discount analyses (DLOC, DLOM, and specialty discounts), transparent flat-fee pricing starting at $1,000, delivery in 3-5 business days, and comprehensive audit defense support.

We comply with AICPA, USPAP, IRS, and IVS standards – and our “Pay After Draft Review” policy means you verify quality before committing.

Contact Transaction Capital LLC today for a complimentary 15-minute consultation with a certified expert.

Conclusion

Gift and estate tax valuation is not a bureaucratic formality. It is the foundation of every successful wealth transfer plan – the document that determines whether your strategy survives IRS scrutiny, court challenge, or family dispute.

The OBBBA’s permanent $15 million exemption has eliminated the old deadline pressure, but it has not eliminated the need for precision. Estates above the threshold still face 40% marginal rates. Business interests remain among the most scrutinized assets in any filing. And valuation errors – whether intentional or not – carry severe consequences.

Strategic use of gifting structures, ownership discounts, and trust vehicles can shield millions from unnecessary taxation. But every strategy depends on one thing: an accurate, defensible valuation prepared by qualified professionals who understand both the law and the asset.

For IRS-compliant, peer-reviewed valuations built to last, contact Transaction Capital LLC. Our certified experts deliver precision in every engagement.

Frequently Asked Questions

1. What is Fair Market Value (FMV) for gift and estate tax purposes?

FMV is the price a knowledgeable, willing buyer would pay a knowledgeable, willing seller – with neither party under compulsion and both aware of all material facts. It is the only value standard the IRS accepts for Form 706 and Form 709 filings.

2. How did the OBBBA change estate and gift tax exemptions in 2026?

The One Big Beautiful Bill Act, signed July 4, 2025, permanently increased the federal estate, gift, and GST tax exemption to $15 million per individual ($30 million for married couples) effective January 1, 2026, indexed for inflation from 2027 onward. The previously scheduled “sunset” that would have halved exemptions was eliminated.

3. Why can’t I use a 409A valuation for gift or estate tax filings?

A 409A valuation determines stock option strike prices under IRC Section 409A. Estate and gift transfers require FMV determinations under IRC Sections 2031 and 2512 – different standards, different methodologies, and different regulatory frameworks. Submitting a 409A report for a transfer of tax filing provides no statute of limitations of protection and may invalidate the filing.

4. What are DLOC and DLOM, and how much can they reduce taxable values?

DLOC (Discount for Lack of Control) reflects a minority owner’s inability to direct dividends, strategy, or asset sales – typically 5%-25%. DLOM (Discount for Lack of Marketability) reflects the illiquidity of private company interests compared to public securities – typically 20%-40%. Applied together, they can reduce a minority interest taxable value by 30%-55% compared to the pro-rata enterprise value.

5. When should I use the Alternate Valuation Date instead of Date of Death?

Elect the Alternate Valuation Date (six months post-death) only when asset values have declined and the election reduces both the gross estate value and the resulting estate tax. The election is irrevocable. Most estates use the Date of Death for simplicity and immediate asset administration clarity.

6. What documentation do I need for an accurate estate or gift tax valuation?

Provide 3-5 years of financial statements and tax returns, ownership agreements, shareholder documents, buy-sell agreements, recent transaction records, and details about any pending acquisitions or negotiations. For real estate, include property records, lease agreements, and prior appraisals. Complete documentation enables fully supported, defensible conclusions.

7. How long does Transaction Capital LLC’s valuation process take?

Standard estate and gift tax appraisals are delivered in 3-5 business days once all documentation is received. Complex multi-entity or cross-border situations may require 7-10 days. Expedited timelines are available for urgent filing deadlines. Schedule a free 15-minute consultation to discuss your specific requirements.