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
What is Gift & Estate Valuation?
Estate and gift valuation is more than just assigning numbers to assets, it’s about ensuring compliance, fairness, and clarity during wealth transfer. When transferring ownership stakes, real estate, or private equity interests, a defensible valuation safeguards your financial and legal interests.
Gift & Estate Valuation determines the fair market value of assets transferred through gifts or estates. It plays a critical role in estate planning, tax reporting, and avoiding IRS disputes.
Key considerations include:
- Business ownership & equity stakes
- Family limited partnerships (FLPs) & LLCs
- Marketability & minority interest discounts
- Real estate, investments, and other high-value assets
Gift and Estate Tax Valuation & Calculation Services
Why is Gift & Estate Valuation Important?
Gifting or transferring wealth without an accurate valuation can expose families to unnecessary IRS audits, penalties, and disputes. A professional valuation provides transparency, reduces conflict, and optimizes tax planning strategies.
An accurate valuation ensures:
- IRS Compliance – Avoid penalties, audits, or disputes.
- Fair Wealth Distribution – Equitable asset transfer among heirs.
- Reduced Tax Exposure – Strategic planning minimizes tax liability.
- Family Harmony – Eliminates conflicts by providing objective values.
- Defensible Records – Reports that stand in audits, mediation, or court.
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.
When is Gift & Estate Tax Valuation Required?
Timing matters when it comes to estate and gift planning. Delays or missteps can create unnecessary tax burdens and disputes. A proactive approach ensures compliance and peace of mind.
You should obtain a Gift or Estate Valuation if:
- You’re transferring business interests to family members
- You’re filing IRS Form 706 or Form 709
- A trust, foundation, or charitable contribution involves high-value assets
- Estate planning requires clarity on asset distribution
- IRS audit or litigation may challenge asset values
Who Needs Gift & Estate Tax Valuation Service?
Gift & Estate Valuation services are not limited to wealthy estates but they’re essential for anyone looking to transfer significant assets responsibly. From families with small businesses to large estate portfolios, every case benefits from objective valuation.
- High-net-worth individuals
Ensure accurate asset valuation to minimize tax liabilities and support smooth generational wealth transfers. - Estate attorneys and tax advisors
Rely on precise valuations to develop effective estate plans and comply with tax regulations. - Families with complex assets
Gain a clear picture of asset worth for fair distribution and strategic planning.
- Trustees & executors
Obtain defensible valuations to settle estates efficiently and avoid disputes. - Charitable foundations and beneficiaries
Establish accurate values for donated assets to meet IRS requirements and maximize tax benefits.
Our Approach: From Consultation to Compliance
Our process is designed to simplify the complex, giving you clarity every step of the way. From initial consultation to final delivery, we provide a structured and transparent journey.
Initial Consultation
We discuss your goals and identify specific estate or gift planning needs.
Document Review
We examine financial statements, partnership agreements, and trust documents to build a complete picture.
Valuation Analysis
Using income, market, and asset-based methods, we perform a thorough and defensible valuation.
Report Delivery
Provide a clear, IRS-compliant valuation report ready for submission or presentation.
Ongoing Support
We remain available for expert testimony and IRS audit defense, if needed.
Why Choose Transaction Capital LLC?
How to Choose Top Estate and Gift Tax Valuation Firms
Reputation
Certifications
Experience
Custom Solutions
Regulatory Knowledge
Methodological Strength
Industry Specialization
Secure Your Gift & Estate Valuation Today
Gift & Estate Tax Planning Strategies in 2025
The estate planning landscape is changing, and so are IRS regulations. Strategic valuation can reduce tax exposure, strengthen compliance, and protect wealth transfer goals.
- Leveraging lifetime gift exemptions
- Structuring FLPs & LLCs for tax efficiency
- Applying DLOM & DLOC discounts to reduce taxable value
- Using charitable trusts & foundations for legacy planning
- Proactive planning before exemption laws sunset in 2026
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.
