Blog - 2021 Archive

Defined value gifts can be used to minimize gift tax on transfers of difficult-to-value assets, such as interests in a closely held business or family limited partnership. In this article BCC Advisers summarizes a recent U.S. Tax Court case that demonstrates the importance of using precise wording in transfer documents to protect transfers against unintended adverse tax outcomes.

Nelson v. Commissioner, T.C. Memo 2020-81 (June 10, 2020).

Forensic investigations almost inevitably require documentary evidence to be examined. Experts often look beyond the content of documents. They also may consider physical and latent evidence — such as handwriting, alterations, and faded or decomposed material. In this article BCC Advisers describes the objectives of questioned document examinations, the standards that may apply and the technological tools that experts use to analyze documents.

Typically, a vast amount of a business owner’s net worth is tied up in their company, particularly if related real estate is owned by the company or a related entity. When transitioning ownership of your business, you must decide whether to keep the real estate or sell it. Sale-leasebacks are becoming more common to unlock additional value for a seller.

Changes in business values during the pandemic may necessitate updates to companies’ buy-sell agreements. In this article BCC Advisers describes three common valuation methods used for buyout purposes — 1) prescribed formulas, 2) negotiated prices, and 3) independent appraisals — and how valuation experts can help owners implement buy-sell agreements that cover all the value-related bases.

During the pandemic, virtual meetings have been used widely for various legal purposes, including court hearings, depositions, settlement talks and M&A negotiations. In this article BCC Advisers identifies potential pitfalls and ways to avoid them when conducting virtual meetings or testifying remotely. A sidebar highlights another lesson learned during the pandemic: Recycling valuation reports can be perilous, except in rare situations.

Given the current federal deficit and proposed spending, it is only a matter of time before tax rates are increased. If you have considered transitioning ownership of your business, you should act sooner, rather than later.