As BV appraisers know, family limited partnerships (FLPs) require an assessment of each investment piece of the partnership’s portfolio to construct the most accurate value—including the costs of illiquidity—of any ownership interest. Determining marketability discounts are often the most difficult piece of the FLP valuation puzzle—particularly since they continue to flag IRS interest and possible examination.
On November 8, join William Frazier (Stout Risius Ross) and Ashok Abbott (West Virginia University) for Part 2 of BVR’s Online Symposium on Estate & Gift Tax as they present the Non-marketable Investment Company Evaluation Method (or NICE), an income-based approach for valuing equity interests in closely held investment entities (FLPs, S corps, LLCs, etc.) that sidesteps any determination of marketability/minority discounts.
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