Valuations for Tax Reporting and Planning

Valuations for Tax Reporting and Planning

Through our subsidiary, MFA Cornerstone Consulting, our professionals approach valuation services with experience that encompasses a full range of business issues, including critical tax considerations.

Comprehensive Approach

Tight regulation and increasing complexity in the tax code demand that the intertwined areas of valuation and tax be addressed as parallel processes. As transactions are considered or tax filings are made, MFA’s professionals can help guide you through the cross-disciplinary nature of valuation and tax matters. This approach minimizes your costs by accounting for the valuation’s peripheral impact, improving its overall efficiency.

Understanding Tax Implications

MFA’s professionals consider not only the tasks at hand but also the tax circumstances that surround them. Our valuation team has significant experience preparing valuation reports for tax purposes and that experience is further augmented by working in close concert with the firm’s tax professionals.

409A Valuations for Stock Options and Related Plans

For early stage and other privately owned companies, the issuance of stock options is a strategic move that can help attract and retain the best employees at a minimal cost – if you can navigate the complexities of compliance with IRC 409A. MFA’s valuations can give your company the support it needs to act on its decision to issue stock options. Our team has extensive experience working with venture-backed clients, and is therefore intimately familiar with the rules and regulations applying to the issuance of this particular form of deferred compensation.

A 409A stock option valuation from MFA can provide you with more than just a safe harbor from IRS scrutiny; it can also support GAAP (Fair Value) reporting for stock-based compensation and serve as a useful benchmarking tool by providing critical insight regarding the changes to and drivers of the value of your organization.

Estate, Gifting and Charitable Donations

MFA is experienced in the valuation of businesses for the purposes of passing on wealth to subsequent generations. We can determine what your business is worth now and what it will be worth to those who will inherit it, and our analysis will shed light on their tax obligations when the time comes. When you are planning to contribute part of your company’s value to a charitable cause, an appraisal from our skilled valuation team will present an accurate, reliable position that will provide support for any potential IRS scrutiny.

Personal/Enterprise Goodwill Separation

If you own a C corporation and you are thinking about selling your business, separating personal goodwill – that portion of an organization’s intangible value that is directly attributable to an individual – from enterprise goodwill can make all the difference for you financially. Identifying and quantifying personal goodwill through a business valuation from MFA can yield substantial tax savings. This separation can also protect your business assets in the event of a divorce.

Full Spectrum of Valuation Services for Tax Reporting and Planning

  • 409A Stock Option Valuations
  • Restricted Stock
  • Built-in Gain Valuation for S-Elections
  • Transfer Pricing
  • Mergers, Recapitalizations and Spin-Offs
  • Estate, Gifting and Charitable Donations
  • Personal/Enterprise Goodwill Separation
  • Golden Parachute & Non-Compete Valuation
  • Debt Discharge & Income From Discharge of Indebtedness
  • Net Operating Loss Studies

RELATED TEAM MEMBERS

William Duratti Lead Partner – Valuation (978) 557-5305
Gregg Hamilton-Piercy Partner – Valuation Practice (514) 903-6966

DOWNLOAD BROCHURE

Valuation Practice Brochure

To learn more, download our Valuation brochure.

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