What is an automobile dealership worth today? That’s a tough question, but I’d be willing to bet the answer is, in most cases, “less than what it was worth last year.” Blue sky is down across the board, due, in part, to a perceived weakening of some franchises and nervous speculation about the going concern of automakers, not to mention a general sense of economic uncertainty. The unfortunate fact is that the market value of your company’s corporate stock might be a fraction of what it was last year.
We’ve heard this all before, of course. But what you may not have considered is that, because of the market crash, now may be a better time than ever to revalue your company’s stock and accelerate your stock gifting schedule. While it may be of little consolation, the potential estate and gift tax savings are worth consideration, nonetheless. It is important to plan for prosperity, even in times of scarcity.
If you haven’t already, or if you haven’t lately, take time to discuss your succession plan with your tax advisor.
Schneider Downs provides accounting , tax and business advisory services through innovative thought leaders who deliver the expertise to meet the individual needs of each client. Our offices are located in Pittsburgh, PA, and Columbus, OH.
This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.