Historically, the majority of valuations attached to U.S. federal gift tax returns were prepared in the context of donors gifting to non-tax-exempt recipients, such as family members. With the rise of donations of complex assets, such as closely held company stock, restricted stock, limited partnership interests and limited liability company interests, valuation analysts are more frequently asked to value such assets for charitable contribution purposes. The extent that the value of the contributed asset meets certain dollar thresholds, the valuation is required to be attached to the donor’s U.S. federal income tax returns. In the case of contributions of property for which a deduction of more than $5,000 is claimed, disclosure requirements are met if a qualified appraisal is obtained for such property. If contributions of property for which a deduction of more than $500,000 is claimed, disclosure requirements are met if the individual, partnership or corporation attaches to the return for the taxable year in which such contribution is made a qualified appraisal of such property. Further, the IRC broadly defines a qualified appraisal as "an appraisal that: (i) conforms to the regulations or other guidance prescribed by the Secretary and (ii) is conducted by a qualified appraiser in accordance with generally accepted appraisal standards." Delphi prepares appraisals in accordance with generally accepted appraisal standards as our appraisals our consistent with the substance and principles of the Uniform Standards of Professional Appraisal Practice, as developed the Appraisal Standards Board of The Appraisal Foundation.
Delphi has extensive experience assisting business owners, families, estate planning attorneys and wealth managers plan and document the donation of minority ownership interests in privately held companies and partnerships.