Trapped-in capital gains affects real-world value

Business Valuation UpdateVol. 2 No. 2
February 1996
Shannon P. Pratt, CFA, ARM, ABAR, FASA, MCBA, CM&AA
internal revenue service (IRS)


An ongoing issue in gift and estate tax valuation is whether, or the extent to which, the liability for unrealized capital gains on appreciated assets should be reflected in valuation of a stock or pa ...