Trade war may shift use of tax cut’s windfall
The extra cash flow companies will see from the Tax Cuts and Jobs Act will affect valuation depending on how the funds will be used.
QBI guidance due out end of July
U.S. Treasury Department rules outlining which pass-through entities can claim the new 20% qualified business income (QBI) tax deduction are expected by the end of July, according to a report in AccountingToday.
[More] BV buzz from NACVA’s annual conference
In the last issue, we included some takeaways from some of the sessions we attended at the annual conference of the National Association of Certified Valuators and Analysts (NACVA) in Las Vegas.
New study predicts ‘mass’ conversion from PTE to C corp
A new study by Penn Wharton predicts a “mass conversion” of pass-through businesses to C corporation under the Tax Cuts and Jobs Act.
How New QBI Deduction Impacts the Hypothetical Buyer and Seller, Part 2
Part 2 of a two-part article on the impact of the new tax law’s Qualified Business Income (QBI) deduction for pass-through entities in determining estimated after-tax cash flow at the investor level, as well as the related change in the fair market value of the entity.
BVU News and Trends July 2018
A monthly roundup of key developments of interest to business valuation experts.
BV buzz at NACVA’s annual conference
BVWire was in Las Vegas last week at the annual conference of the National Association of Certified Valuators and Analysts (NACVA).
Read this case before writing your next valuation report
Not long ago, we were at a conference where the speaker asked the audience whether anyone was familiar with the Gallagher case.
Global BVU News and Trends June 2018
Business valuation news from a global perspective.
Checklist for Initial Information Request to Analyze Replacement Compensation
The Tax Cuts and Jobs Act (TCJA) will trigger much greater scrutiny on what constitutes reasonable compensation for owner-employees of pass-through entities (PTEs).
Firms expect significant valuation effects from tax reform
Tax and finance executives were asked the following question during a recent KPMG webinar: How significant do you expect the effects of tax reform to be on valuations performed for your business?
‘Does new bonus depreciation apply to intangibles?’
That was a question from the audience at the ASA/USC 13th Annual Fair Value Conference held May 10 in Los Angeles.
Flowchart seeks to sort out QBI
Arguably the most puzzling provision of the Tax Cuts and Jobs Act is the New IRC Code Section 199a, which allows a 20% write-off of “qualified business income” (QBI) for sole proprietors, owners of S corporations, and members of partnerships/LLCs.
Internal IRS memo unearthed re: S corp valuations
During a webinar, Michael Gregory (Michael Gregory Consulting LLC) discussed an internal IRS memo he recently obtained via a Freedom of Information Act (FOIA) request that has implications for valuing noncontrolling interests in S corps.
Expert Qualified to Offer Unit Valuation of Telecom Property
In tax assessment case, court finds valuation expert qualified under Rule 702 despite lacking an appraiser’s license; court says rule specifically contemplates expert opinion on property valuation by nonappraisers if witness is qualified by “knowledge, skill, experience, training, or education.”
Level 3 Communications, LLC v. Dep’t of Revenue
In tax assessment case, court finds valuation expert qualified under Rule 702 despite lacking an appraiser’s license; court says rule specifically contemplates expert opinion on property valuation by nonappraisers if witness is qualified by “knowledge, skill, experience, training, or education.”
New Tax Legislation Consequences on U.S. Transfer Pricing and Intangibles
The Tax Cuts and Jobs Act of 2017 (the Act) brought sweeping changes to the international tax landscape, including the transfer pricing arena. Intangible property is at the core of many of these changes. Plus, the IRS is cracking down on this area.
BVU News and Trends May 2018
A monthly roundup of key developments of interest to business valuation experts.
Nursing Home Valuation Must Separate Real Estate From Business Activity
In tax assessment dispute involving nursing home, high court says where facility performs business activity and real estate activity, tax appraisal must separate business value from real estate value; Board of Tax Appeals failed to ensure proper allocation of sales price among assets.
Arbors East RE, L.L.C. v. Franklin County Bd. of Revision
In tax assessment dispute involving nursing home, high court says where facility performs business activity and real estate activity, tax appraisal must separate business value from real estate value; Board of Tax Appeals failed to ensure proper allocation of sales price among assets.
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.
Global BV News: Changes to U.K. intangible tax regime being reviewed
The United Kingdom has launched a wide-ranging consultation on possible changes to the current regime for taxing corporate intangible fixed assets.
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.