With the August Recess upon us in the United States Congress, it is a good time to sit back in our chairs and survey the landscape. In the last several months, we have gained some clarity on the future (or lack thereof) of the proposed 2704 regulations. On the other hand, tax reform has not advanced very far. The first six months of the Trump Presidency have included several public statements as to the direction of tax reform and the emphasis of potential legislation. There has been more substance with respect to regulations, including listing the proposed 2704 regulations as significantly burdensome and in need of a thorough review. Meanwhile, major healthcare reform has not occurred.
I reviewed what has been said and written in the wake of Thursday’s release of the Trump Tax “Plan”, and watched a video of the Cohn/Mnuchin press conference. There appears to be a lack of detail in what amounts to a one-page plan containing core philosophies / talking points / bargaining positions. The “Plan” focuses on corporate taxes and individual income tax rates, but also calls for immediate repeal of the death tax. There is no mention of gift tax, GST, carryover basis, or otherwise. Therefore, it is difficult from an estate planning perspective to draw too many conclusions from this “Plan.”
After more than a year of speculation and rumors, on August 4, the Internal Revenue Service (“IRS”) issued proposed regulations under Internal Revenue Code §2704 (the “Proposed Regs”). Clearly, the goal of the Proposed Regs is to limit (or eliminate outright) the application of discounts for lack of control and lack of marketability when valuing interests in family controlled entities for gift, estate and generation-skipping tax purposes.
MPI announces the addition of seven new faces to our team. These team members will be working closely with our senior staff to provide analytical support required on client related engagements in our Tax-Based Valuations, Transaction Advisory, Financial Reporting and Litigation Support business.
Vice Chancellor Laster’s recent decision in the Delaware appraisal action involving Dell, Inc. determined that Dell’s stock was valued at $17.62 per share, or some 26% above the going private offer worth $13.96 per share.