OUR THOUGHTS ON:

Take Advantage of a Reduction in Your Company's Value by Gifting Stock

Business Advisors

By Christy Samek

For business owners who are considering gifting shares of the company stock: now may be the time to act!

Due to the economic recession that has beset the United States for the past two years, the fair market value of your business may be down. And while declining business values may not exactly be a cause for rejoicing, consider taking advantage of the ability to gift more shares of company stock under the annual gift tax limits.

In cases of valuations for estate and gift tax purposes, a company’s fair market value is often reduced for discounts related to a lack of control and a lack of marketability. In many cases, an analysis of various sources of data that are used to quantify such discounts supports higher discounts in periods of economic turmoil.

Reduced overall company value and heightened discounts result in a significant opportunity for estate planning.

If you need help in determining the value of your company, please contact a member of Schneider Downs Business Advisors, and we will be happy to assist you in the valuation of your company. Schneider Downs can also assist in filing the appropriate tax forms for your gift and even in determining an appropriate estate tax planning strategy.

Schneider Downs provides accountingtax, wealth management 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.
 

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

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