Tax Compliance / Planning

Q: When do I need a business valuation for estate planning?

A business valuation is typically required when transferring business interests through gifting, bequests, or trusts — and is needed to support estate and gift tax returns filed with the IRS. Valuations are also used in succession planning to establish the basis for ownership transfers.

Q: What is personal goodwill and why does it matter?

Personal goodwill represents the value attributable to the skills, reputation, and relationships of a specific individual rather than the business entity itself. Identifying and separately valuing personal goodwill can be significant in business sale transactions, as it may be treated differently for tax purposes than enterprise goodwill.

Q: What is a 1202 QSBS valuation?

A Section 1202 QSBS valuation documents the fair market value of qualified small business stock at the time of original issuance, establishing the basis for the potential capital gains exclusion available to eligible shareholders upon a future sale.

Q: How do you value a minority interest in a closely held business?

Minority interests in closely held businesses are typically subject to discounts for lack of control and lack of marketability. We apply recogni z ed valuation methodologies and discount analyses to reflect the specific rights, restrictions, and characteristics of the interest being valued.

Q: How quickly can a tax compliance valuation be completed?

Timeline depends on the complexity of the business and the specific valuation requirement. We recommend engaging well in advance of any filing deadlines to allow adequate time for analysis, documentation, and advisor review.

Supportable Valuations for Estate and Gift Tax, Succession Planning, and IRS Compliance

Houlihan Capital provides independent valuations for tax reporting and compliance purposes, delivering analyses structured to support IRS scrutiny across estate and gift tax, succession planning, and other tax-driven valuation requirements.

Our work is grounded in rigorous methodology and is clearly documented, giving business owners, families, and their advisors confidence in the supportability of the valuation for tax compliance and planning purposes.

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What We Do

Tax Compliance & Planning Valuation Services

Estate & Gift Tax Valuations

Independent valuations of business interests, closely held stock, carried interest, and other assets for estate and gift tax reporting purposes, structured to support IRS review.

Succession Planning Valuations

Valuation support for business succession planning, including family limited partnerships, gifting strategies, and ownership transition structures.

Legal Entity Conversions

Independent valuations supporting changes in entity structure, such as C-corporation to S-corporation elections or LLC-to-corporation conversions, including built-in gains analysis under IRC Section 1374 and fair market value determinations for the resulting tax basis.

1202 QSBS Valuations

Valuation support for Section 1202 qualified small business stock exclusions, documenting the fair market value of stock at the time of original issuance.

Personal Goodwill Valuations

Independent analysis of personal versus enterprise goodwill in the context of business sales, supporting tax planning and transaction structuring.

Charitable Contribution Valuations

Independent valuations of business interests and other assets contributed to charitable organizations, supporting IRS Form 8283 disclosure requirements.

Our Experience

Proven Across Complex Transactions

Representative Engagements

Gift Tax Valuation of Minority Interests in a Family-Owned Manufacturing Company

A multi-generational family sought to transfer ownership of a closely held industrial equipment manufacturer to the next generation as part of a coordinated estate and gift tax plan. Working alongside the family's legal and tax advisors, Houlihan Capital performed an independent valuation of the non-controlling membership interests being gifted, applying income - and market -based approaches and supporting discounts for lack of control and lack of marketability.

The resulting analysis was fully documented to withstand IRS review and provided the family and their advisors with a defensible basis for the gift tax returns, enabling the ownership transition to proceed with confidence.

Why Houlihan Capital

IRS-Supportable Valuations for Tax and Succession Planning

Houlihan Capital provides independent tax compliance valuations built on transparent, well-documented methodologies, structured to support IRS review and give your advisors confidence in the defensibility of the analysis.

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IRS-Supportable Methodology

Our tax compliance valuations apply consistent, well-documented methodologies aligned with applicable IRS standards — providing a supportable basis for estate and gift tax reporting, succession planning, and other tax-driven valuation requirements.

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Business & Industry Expertise

Deep knowledge across the industries and business types our clients operate in. Ensuring the valuation reflects the specific factors that drive value in your business, not a generic formula.

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Senior-Level Engagement

Direct access to experienced valuation professionals who understand the planning context and can work alongside your legal and tax advisors throughout the engagement.

Common Questions

Questions Business Owners and Their Advisors Ask Us

When do I need a business valuation for estate planning?

What is personal goodwill and why does it matter?

What is a 1202 QSBS valuation?

How do you value a minority interest in a closely held business?

How quickly can a tax compliance valuation be completed?

Strategic Insights

Guidance for Business Owners, Families, and Their Advisors

Personal Goodwill in Business Transactions

An analysis of how personal goodwill is identified, valued, and treated in the context of business sales and succession planning.

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Valuation Services Overview

A broad overview of Houlihan Capital’s valuation capabilities across financial reporting, tax, and transaction advisory.

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Need a valuation for tax compliance or planning?

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