By Kerry Brink
The discounts that have been allowed for gifts of minority interests in a family business, to other family members, may be eliminated in 2017! The IRS has proposed changes to regulations that are intended to eliminate the ability of an appraiser to take minority ownership into consideration when valuing a gift of closely held businesses to family members. It is not clear what the timeline of implementing these regulations might be – but there is a push for the regulations to be finalized in early 2017. The proposed regulations are out for comment and there are many criticisms, so an actual implementation date is hard to calculate.
So – You may want to consider making those gifts sooner, rather than waiting!