The IRS is talking rule changes again. It may be time to take another look at your estate plan.
Family-owned businesses often gift ownership interests in the business to younger generations in an effort to reduce gift or estate tax liability. The reported tax value of those gifts is discounted to reflect the fact that the new owners lack the ability to control the business and cannot market the interest to other buyers. The IRS now thinks it may be time for that practice to end.
The WSJ has recently reported that the IRS may soon greatly restrict or even disallow those discounts for family businesses. Exactly how and or when the IRS will inhibit discounts is still uncertain unclear, but, if the agency does act, the impact will be substantial. Have you considered how such a change might impact you and your family? Call the estate planning attorneys at SYK today to see how the proposed change affects you.