Valuation Implications of the Proposed Changes to Section 2704

Good News or Bad News? Maybe Not So Bad

It is clear that the DOT/IRS are attempting, through Proposed Changes to Section 2704 of the Internal Revenue Code, to eliminate minority interest discounts and marketability discounts (DLOMs), even though those terms are not mentioned at all.  I have read the Proposed Changes as a business appraiser and a businessman.  They may have succeeded in eliminating “minority interest discounts” and “marketability discounts” as those terms are currently used.  However, I do not think they have succeeded in eliminating valuation discounts in fair market value determinations for family partnerships or other family entities.

New Whitepaper Regarding Proposed Changes to Section 2704

To address the valuation side of things, I wrote a whitepaper titled Valuation Implications of the Proposed Changes to Section 2704 outlining my thinking on valuation implications in some detail. Here is a short link to where you can download the paper.

The paper provides some good news and some bad news for business appraisers, attorneys, other financial planners and clients.  Download and read on

Be well,


Buy-Sell Agreement News

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