On August 4, 2016, the Internal Revenue Service (IRS) issued its long-awaited proposed regulations to Section 2704. The proposed regulations are designed to inhibit taxpayers from understating the value of their assets for estate and gift purposes. Its purpose is to ensure that all intra-family transfers of interest in entities are noted at fair market value and are taxed as so. The proposed regulations could take effect as early as the end of 2016. Read more here.
Source: The Tax Advisor
If you are considering gifting or transferring equity interests using minority discounts, please contact me at 301-575-0332 to learn what your options are as these proposed regulations may impact your ability to do so.
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