How Tax Affecting Influences a Business Valuation
How Tax Affecting Influences a Business Valuation
- Introduction to Tax Affecting – What is it and how does it influence a valuation for an estate planning client?
- Traditional Valuation Methodologies - Considerations for “Pass Through Entities” versus “C” Corporations
- Adjusting the income streams of “Pass Through Entities” by tax affecting them at corporate rates.
- Adjusting capitalization and discount rates to represent pre-tax rates of return.
- Utilizing specialized models developed to value ownership interests in “Pass Through Entities.”
- Historical IRS View – IRS Guide for Income, Estate and Gift Taxes: Valuation Training for Appeals Officers and the IRS Examination Technique Handbook & other IRS Materials
- Brief Summary of Jurisprudence (Before Jones) - Gross, Gallagher, Wall, Kessler, Adams, Heck, Bernier, etc.
- Summary of Jones (and Cecil and Kress)
- Key Take Away from Jones
Michelle Avery, CPA/ABV, CVA, MAFF
Laporte, CPAs & Business Advisors
Vanessa Claborne, Chaffe & McCall President & CEO
Ms. Claiborne has been with Chaffe & Associates, Inc. since 1987 and was promoted to President and Chief Executive Officer in 2009. She also serves as the Managing Director for the Valuation Advisory group. She is a Certified Public Accountant (CPA), Accredited in Business Valuations (ABV) by the American Institute of Certified Public Accountants and has received her designation as an Accredit Senior Appraiser (ASA) by the American Society of Appraisers. She holds Securities Licenses 79, 24, 27, and 63. Ms. Claiborne is Accredited in Estate Planning by the National Association of Estate Planners and Councils and a Certified Exit Planning Advisor by the Exit Planning Institute.
Ms. Claiborne specializes in business valuation services primarily for estate and gift taxes, Employee Stock Ownership Plans (ESOPs), GAAP fair value reporting, financial reporting, corporate planning, litigation support including expert testimony, exit planning, and shareholder transactions and restructuring.