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Family-Owned Business Assault

Ericka-Heiser-headshotThe Treasury Department is proposing radical changes to the regulations of Section 2704 which was made law in 1990. Without explicitly stating so, the Proposed Regulations will virtually eliminate valuation discounts (minority and marketability) in the context of family-controlled entities for estate and gift tax purposes. These complex regulations have been described as an assault on family business, and a “back door” for the Administration to increase the Estate Tax without Congressional review. The Department is holding a hearing on the Regulations in December and some form of the proposed Regulations are expected to be finalized in early 2017.  Several in Congress are scrambling to stop these Regulations, and many legal pundits believe they may be unconstitutional.  However, if you are contemplating intra-family entity transfers, it may be better to transact under the current rules.   Talk to your tax and legal professional in the very near future.

We would be delighted to help you or your clients. Please contact the KTLLP Valuation Team for your business consulting and valuation questions.


Ericka Heiser

Ericka Heiser

Ericka is a graduate of the University of South Dakota with a Bachelor of Science degree in Business Administration (1999), followed by an MBA (2005). After ten years of experience in the financial services industry, Ericka joined the firm in 2006 as a valuation analyst. She became Director of the Business Valuation Team in 2018.
Ericka Heiser

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