Accurate. Defensible.
IRS-Compliant.
When transferring ownership interests—whether to children, a trust, or another family member—the IRS requires a formal, independent business valuation to establish the Fair Market Value of the gifted interest.
This valuation isn’t optional.
It’s the foundation your CPA, attorney, and wealth advisor rely on to properly document the gift, calculate tax impact, and protect your estate plan from future IRS scrutiny.
At Green Appraisal, LLC, we provide year-end gifting valuations that are clear, defensible, and aligned with all IRS standards, ensuring your transfer is completed correctly before December 31.
Why You Need A Gifting Valuation
If the valuation is incomplete, overly aggressive, or not performed by a qualified professional, it can trigger penalties, delays, or an audit—sometimes years later.
Our valuations are built to stand up to the highest level of scrutiny
Why Year End Matters
1
Business Performance Through Year-End
To meet IRS guidelines, a gifting valuation must reflect the business’s actual financial performance up to the date the gift is made. This means we must incorporate:
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Final revenue and profit numbers rather than projections
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Any year-end adjustments, such as bonuses, write-offs, or inventory corrections
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Seasonal impacts, which often significantly affect end-of-year results
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Operational changes (new contracts, lost clients, staffing shifts, equipment purchases)
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Cash flow trends through the close of the fiscal year
Even slight changes in year-end performance can materially impact value.
2
Economic Conditions as of the Gift Date
The IRS requires valuations to incorporate the economic and market environment on the exact date the gift is made. This includes:
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Current interest rates
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Inflation trends
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Supply chain conditions
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Industry growth or contraction
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M&A activity in your sector
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Market volatility
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Regulatory changes affecting your industry
Economic conditions can shift significantly between summer and December — and these changes directly affect value.
If the valuation uses outdated economic data, the IRS may view the value as unsupported. Tying the valuation specifically to the gift date ensures full compliance with Revenue Ruling 59-60 and IRS fair market value requirements.
3
Final Ownership Structure and Percentage Gifted
The valuation must reflect the exact ownership interest being transferred — not an estimate or placeholder. This includes:
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Percentage of the business gifted (e.g., 10%, 25%, minority vs. majority)
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Whether the interest is voting or non-voting
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Who will own the remaining interests after the gift
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Any planned future transfers
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The impact of the transfer on control rights
These details determine whether discounts apply, such as:
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Discount for Lack of Control (DLOC)
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Discount for Lack of Marketability (DLOM)
These discounts can meaningfully reduce the taxable value of the gift — but only when properly documented based on the final ownership structure.
Start Your Year-End Gifting Valuation Today
If you’re planning to complete a gift before December 31, now is the time to begin.
We offer complimentary discovery calls for business owners, wealth advisors, and estate planning attorneys.