Valuation Discount Considerations With Multi-level Entities

Valuation Discount Considerations With Multi-level Entities

Prudence, support and reflection are imperative

Multi-level discounts are often appropriate in the valuation of complex, multi-tiered business interests for various tax-related transfer purposes. “Tiered business entities” are defined as companies that own an interest in another company. That is, tiered business entities exist when an upper tier entity owns an interest in a lower tier entity. 

The Internal Revenue Service often disputes the reasonableness, support and application of multi-level discounts (that is

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