This authoritative document provides guidance on valuing closely held company stock for estate and gift tax purposes. It outlines factors to consider when market prices are unavailable, emphasizing the need for a comprehensive analysis of both quantitative and qualitative data. This valuation is essential for accurately determining tax liabilities and ensuring fair treatment in transactions involving private businesses.
Its significance lies in establishing a framework for determining fair market value, a critical component in wealth transfer planning and business succession. The guidance offered has provided a foundation for subsequent case law and regulations. Understanding its historical context reveals its enduring influence on valuation practices, as it remains a cornerstone for professionals in this field. It reduces ambiguity and promotes consistency in valuation methodologies.
