March 3, 2009 - Phil Hodgen

Valuation discount strategies

This is an estate tax strategy designed to make $1.00 of assets look like $0.75 (or less) for tax purposes. It works. It is usually done with fractional ownership or family limited partnerships.

The door’s going to close on this strategy. H.R. 436 brings into play the possible elimination of this strategy.

The strategy is particularly good because the VIX (S & P volitility measure) is through the roof right now. That means higher valuation discounts.

It is a good way to unwind asset positions at a reasonable tax cost. You’re going to spend money. You’re going to add some complexity to your life. But your tax savings will be a bonus multiplier number that will make you happy.

Go. Do.

Nonresidents with US Activities