Tax Valuation Services

At The Washington Valuation Group (WVG), we provide expert tax valuation services to support gift tax filings, estate tax compliance, and proactive estate planning. Our valuations are rooted in sound methodologies, guided by IRS regulations, and designed to withstand scrutiny. Whether you’re transferring wealth, planning your estate, or navigating complex tax scenarios, we deliver accurate and defensible valuations tailored to your needs.

 

Comprehensive Tax Valuation Services

Our tax valuation expertise covers a wide range of scenarios to help individuals, families, and businesses achieve their financial and tax planning goals:

• Gift Tax Valuations:
  The gift tax applies to the transfer of property from one individual to another without receiving full value in return. Our valuations ensure compliance with IRS regulations by accurately determining the fair market value (FMV) of gifted assets, such as closely held stock or partnership interests.

• Estate Tax Valuations:
  Estate taxes are assessed on the transfer of property at death. We provide detailed valuations of all relevant assets—including real estate, marketable securities, and business interests—ensuring accurate reporting for estate tax filings.

• Estate Planning Valuations:
  Proactive estate planning involves structuring your assets during your lifetime to minimize tax liabilities and maximize wealth transfer. We assist with valuations for gifting strategies, family limited partnerships (FLPs), family limited liability companies (FLLCs), and other entities used in estate planning.

 

Common Scenarios Requiring Tax Valuations

We provide valuations for a variety of entities, interests, and situations, including:

• Gifting of closely held stock and partnership/LLC interests

• Buy-sell agreements and shareholder agreements

• Creation of non-voting stock for gifting purposes

• Family limited partnerships (FLPs) and family limited liability companies (FLLCs), including those holding real estate, marketable securities, or closely held common stock

Family Limited Partnerships (FLPs) and Family Limited Liability Companies (FLLCs) are popular tools for estate planning. Beyond their business purposes—such as centralized management and asset protection—they often offer tax advantages through valuation discounts.

 

Understanding Valuation Discounts

Valuation discounts can significantly impact the overall value of transferred assets, making accurate calculations essential:

• Discount for Lack of Control (DLOC): Reflects the reduced value of minority ownership interests that lack decision-making authority within an entity.

• Discount for Lack of Marketability (DLOM): Accounts for the reduced liquidity of ownership interests that cannot be easily sold or converted to cash.

These discounts often range from 20% to 40% of the total value, underscoring the importance of a well-documented valuation report to withstand IRS scrutiny. Our reports are comprehensive, defensible, and compliant with IRS Revenue Ruling 59-60.

 

Why Choose The Washington Valuation Group?

• Collaboration with Professionals: We work closely with estate planning attorneys, wealth advisors, CPAs, and other professionals to help clients achieve their goals.

• Compliance Assurance: Our valuations adhere to IRS guidelines and professional standards set by the National Association of Certified Valuators and Analysts (NACVA).

• Expertise in Complex Entities: Extensive experience valuing FLPs, FLLCs, and other entities commonly used in estate planning strategies.

• Defensible Results: Our reports are guided by sound valuation theory and supported by appropriate precedent rulings to withstand audits or disputes.

 

Our Process

1. Data Collection: Gather all relevant financial data, organizational documents, market trends, and other factors impacting valuation.

2. Valuation Methodology: Apply industry-standard approaches—income approach, market approach, or asset-based approach—based on the specific asset or entity being valued.

3. Discount Analysis: Accurately calculate DLOCs and DLOMs where applicable to reflect the true fair market value of ownership interests.

4. Detailed Reporting: Deliver clear, well-documented reports that meet IRS requirements while supporting your tax or estate planning objectives.

 

At The Washington Valuation Group, we understand the complexities involved in gift tax filings, estate tax compliance, and estate planning strategies. Contact us today to learn how our expertise can help you protect your wealth while ensuring compliance with all applicable regulations.