CPA tax advisers should examine
closely held corporate clients for E&P bailout opportunities at the temporarily reduced dividend rates.
They develop strategies for expansion, competitive pricing and financing, says Harsha Desai, professor of management and director of the Loyola Center for
Closely Held Firms.
This article is a primer for some of the issues that a practitioner faces in advising clients in the event of (or in anticipation of) a divorce, when one of the divorcing (or potentially divorcing) parties has (or may have) an interest in a
closely held business.
The AICPA's new videocourse A CPA's Guide to Valuing a
Closely Held Business provides a working knowledge of how a CPA values a
closely held business for purposes such as estate and gift tax planning, asset allocation, mergers and acquisitions, divorces and damage claims.
When the same individuals or families are involved in several
closely held entities, tax advisers should advise caution when borrowing funds to acquire or expand interests in an entity (especially if allocated losses are expected).
CPC was established in June 1997 to address the professional needs of those members in private and
closely held companies, and to provide a voice for their interests, both within FEI and externally--before appropriate governmental and regulatory bodies.
The IRS has typically applied this asset approach when a
closely held corporation functions as a holding company and earnings are relatively low in comparison to the fair market value of the underlying assets.
This may be particularly attractive for
closely held corporations.
In instances involving the valuation of a
closely held business, CPAs said they were caught unexpectedly, with no sense of a problem during the engagement.
Cole Taylor Bank, one of Chicago's largest independent banks specializing in serving
closely held businesses, and Nationwide Exchange Services (NES), a leading qualified intermediary for tax-deferred exchange services and products, are hosting a private event this evening at The Standard Club in The Loop.
they have to divest
closely held business stock and concentrated positions in publicly held companies; ownership by related parties is taken into account in this determination).
However, when the transfer involves a third party such as a
closely held corporation, the tax consequences may be less predictable.
