On August 4, the Treasury Department issued Proposed Regulations under §2704 of the Internal Revenue Code that eliminate almost all valuation discounts for family-owned businesses and investment entities. This will significantly impact planning strategies, and you (and, for advisors, your clients) must take action by year end if you/they want to achieve valuation discounts under current rules. For a thoughtful analysis of the proposed regulations, please see this excellent article prepared by WealthCounsel. Please contact our office (703-218-2177 or 703-218-2112 or wayne.zell@ofplaw.com) as soon as possible to explore how we can assist you now in taking advantage of valuation discounts on transfers to family members or entities for their benefit.
