A Formal Business Appraisal
- Must meet IRS guidelines
- Regulation section 25.2512-3(a)
- Valuation expert must be a “qualified appraiser”
- Section 170(f)(11)(E)(i)
- received designation from recognized appraiser organization
- regularly performs appraisals for compensation
- meets other requirements as prescribed by the Secretary of The Treasury
- Section 170(f)(11)(E)(i)
- Report must meet all guidelines (80 – 120 pages)
- Must include all approaches to value
- Must include review of economy
- Must include history of company
- Must include risk assessment
- Client must be prepared to assist valuation expert in detailed and in-depth data gathering.
Qualified Business Appraisers typically charge $15,000 and up
When You Need It
- Valuations involving gifts or estates
- Partner & Shareholder disputes
- Divorces
- Any time there is a possibility a dispute will go to court