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
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
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
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.
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.