BVU News and Trends May 2018
A monthly roundup of key developments of interest to business valuation experts.
20 Points to Consider for Valuations Under the New Tax Law
Since the Tax Cuts and Jobs Act was enacted, BVR has been gathering opinions and observations from valuation experts about the impacts of the new tax law on valuations. Here's a list of some points to consider that is by no means exhaustive but is a good starting point.
New IRS guidance on interest expense limits
The Treasury Department and the IRS have issued guidance (Notice 2018-28) for computing the business interest expense limitation under the Tax Cuts and Jobs Act.
Extra cash flow from tax reform to be invested
Much of the windfall savings companies are expecting from the new tax law will be used to increase domestic investment, according to a Deloitte survey of CFOs.
Q&As on the Impact of the 2017 Tax Act on Business Valuation
Chris Mellen (Valuation Research Corp.) adds to the evolving discussion about the impacts of the new tax law on business valuation. Part of a series.
Tax Reform Puts Broader Spotlight on Reasonable Comp
Ron Seigneur and Kevin Yeanoplos, the co-authors of a guide on reasonable compensation, explain how tax reform has put more focus on the matter.
New tax law’s impact on intangibles
Under the new tax law, intangibles are more broadly defined than under prior law.
QBI puzzles fund managers
A flash poll conducted by Baker Tilly Virchow Krause LLP (Baker Tilly) reveals that 36% of fund managers specify qualified business income (QBI) deductions as the greatest challenge faced from the passage of tax reform.
What tax reform?
If any of your clients need valuation-related work because of the new tax law, don’t wait for them to call you.
New Tax Law Adds Nuances to Valuing Wineries
The Tax Cuts and Jobs Act includes special tax breaks for a number of industries, including the winery sector. This adds to the special differences experts need to consider when valuing these entities.
Valuing C Corps and Pass-Through Entities Under the New Tax Law
On December 22, 2017, President Donald J. Trump signed into law the Tax Cuts and Jobs Act of 2017 (the “Act”). The Act is the most comprehensive tax reform package since the Tax Reform Act of 1986. The Act contains sweeping changes to corporate and individual tax rates, deduction limitations, foreign income taxation, and the tax treatment of pass-through entities (PTEs) such as S corporations and limited liability companies. In this article, we will discuss ...
Valuing Bonus Depreciation Under the New Tax Law
The Tax Cuts and Jobs Act of 2017 (the Act) provides businesses the ability to deduct capital expenditures as “bonus depreciation” for purchases of qualified property. This article provides a framework for quantifying the value of bonus depreciation in the context of the discounted cash flow method.
From the Chair
The Tax Cuts And Jobs Act became effective on January 1, 2018 and will likely impact the value of various entities and intangible assets. This may necessitate changes in our practice application to value these entities and assets.