Discount key to minority shares
The IRS will soon decide whether to disallow discounted valuations of minority shares of family-owned businesses. The Internal Revenue Code has long acknowledged that minority shares are less valuable than shares that control the operation of a privately owned enterprise, such as a community bank. But this summer, the IRS proposed to eliminate recognition of this important distinction. For the purposes of estate and gift taxes, the IRS proposed shares be valued equally. Comments were due Nov. 2 and a hearing was scheduled for Dec. 1. So by the . . .
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