Thinking of giving?

Valuations are not a box-checking exercise. They are a foundational part of any successful estate, gift or charitable planning strategy. 

This e-book offers a high-level overview of what you need to know in terms of valuations – including when valuations are required, what the IRS expects and how to avoid the most common mistakes. We’ll help you understand the process, prepare with confidence and know when to bring in an experienced valuation professional.

Download the e-book now to gain insight into:

• The importance of valuations
• The basics of valuations
• Estate and gift valuations
• Valuations for charitable contributions
• Best practices for obtaining and defending a valuation

What’s inside the e-book? Preview section one below.

Section 1: The importance of valuations

When making gifts, few things are as critical – or as closely scrutinized – as valuation. Whether you’re transferring property to family or donating it to charity, the IRS requires assets to be reported at fair market value – and those valuations must be credible, defensible and properly documented.

Getting it wrong can be costly. A valuation that’s too low may result in underreported tax liability, while one that’s overstated could trigger penalties for excessive deductions. And in many cases, informal estimates or DIY approaches simply won’t hold up under scrutiny.

Before we dive into this topic in greater depth, you should be aware of some consequences of improper or poorly supported valuations:

• IRS penalties – Overstating deductions or undervaluing assets can lead to significant financial penalties, including accuracy-related and gross valuation misstatement penalties.
• Increased risk of audit – Incomplete or noncompliant appraisals may trigger audits, which can be time-consuming, expensive and invasive.
• Legal disputes – Unclear or biased valuations can lead to conflicts among heirs, beneficiaries or business partners – especially with closely held business interests.
• Reputational risk – For high-net-worth individuals and business owners, compliance missteps can damage personal or professional credibility.
• Lost tax benefits – If your valuation doesn’t meet IRS standards, deductions may be denied entirely and the limitations period for IRS assessment could be extended infinitely.

Contrary to popular belief, valuations are not merely a box-checking exercise. You can’t simply estimate asset values or rely on someone who is unqualified to prepare them. A credible valuation requires a trained, independent appraiser who adheres to IRS regulations and industry standards like Uniform Standards of Professional Appraisal Practice (USPAP).

This e-book offers a high-level overview of what you need to know – including when valuations are required, what the IRS expects and how to avoid the most common mistakes. We’ll help you understand the process, prepare with confidence and know when to bring in an experienced valuation professional.

Because, when it comes to valuations, “close enough” is simply not good enough.

The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.