Proposed Tax Code Changes Could Cost Family-Owned Businesses Dearly
On August 2, the IRS issued proposed regulations regarding Section 2704 of the Internal Revenue Code. This could reduce or disallow the discounts on non-controlling interests in many family-owned and controlled businesses.
In practical terms, what this means is a significant increase in taxes owed — to the tune of 25 to 50 percent — when one transfers an interest in a family-owned company for gift and estate tax purposes.
A public hearing is scheduled for December 1 and we expect significant opposition to the proposed regs. There are also two proposed bills (HR 6100 and s 3436) in Congress trying to stop the proposed regs from taking effect.
BIA/Kelsey’s valuation team will host a webinar on this topic next Monday at 2EST. Listen to arm yourself with information and make an informed decision regarding your business.
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I don’t usually leave comments but things like this really get my blood boiling. As business owners, and small family run business’ to boot, we bust are asses even harder than most to make ends meet and have something to pass on to our loved ones.
All of this double, triple, and quadruple taxation is absolutely absurd. All because the Corporation of The United States Government can run no other business than a tax collecting machine. It’s a disgrace and hardly what the founders of this Constitutional Republic had in mind. God help us.