Happy September! With the holiday season approaching and the end of the year just around the corner, I would like to give you an update regarding the Proposed Regulations on valuation discounts for family-owned businesses under §2704 of the Internal Revenue Code, which were issued by the Treasury Department on August 4, 2016. Since many of our clients own and operate family businesses, this potential change is extremely poignant.
The Proposed Regulations will undoubtedly impact planning strategies that use restricted interests to achieve valuation discounts for family-owned businesses and will dramatically limit and potentially eliminate discounted transfer opportunities for transfer tax purposes. The Proposed Regulations are as follows:
The IRS has scheduled a hearing on the Proposed Regulations for December 1, 2016, and stated that the final regulations won’t be effective until at least 30 days after they become final. I am taking this opportunity toadvise my clients to take action prior to the end of 2016, in order to take full advantage of the discounted transfer strategies that are currently in place before the Proposed Regulations are finalized in December.
PLEASE CALL OUR OFFICE IMMEDIATELY IF ANY OF THE FOLLOWING APPLY TO YOU:
CONTACT NM LAW, APC