24
New Date: Tuesday, March 24, 2015
Time:
10:00am-11:40am PT / 1:00pm-2:40pm ET
Format: A BVR Webinar

Earn 2 CPE credits
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Featuring  (click image for bio)

Lance Hall
ASA
Stout Risus Ross

About This Program

This presentation will examine how key person risk increased from 5%-15% discounts to 70%-100% discounts, when called personal goodwill. In the Estate of Adell and Bross Trucking, the Tax Court, for the first time, took an income tax construct of personal goodwill and applied it to an estate (Adell) and a gift (Bross Trucking). As a result, the respective values of the two companies were reduced by 65% and 100% respectively. The Tax Court’s adoption of personal goodwill has opened a Pandora’s Box of unintended consequences and opportunities for taxpayers to reduce the taxable portion of gifts and estates. This presentation will examine the income tax and marital dissolution background of personal goodwill, compare and contrast personal goodwill and key person risk and introduce methodologies to determine personal goodwill.

Agenda

  • Introduction
  • Understanding key person risk – the 10% discount
    • Definition
    • Court cases
      • Estate of Furman
      • Estate of Mitchell
      • Estate of Renier
  • Understanding personal goodwill
    • Marital dissolution
      • Finn v. Finn
      • Von Hahn v. Von Hahn
      • Hill v. Hill
    • Income tax
      • Court cases
        • Martin Ice Cream Company
    • Estate & Gift Tax
      • Estate of Adell
      • Bross Trucking
    • Attributes of personal goodwill
      • Discussion
      • Attributes
      • Hypothetical exam (A) (B) & (C)
  • Valuation of personal goodwill
    • Direct
    • Indirect
    • Sum-of-the-Parts
  • Wrap-Up

Learning Objectives

  • Understand the similarities and differences between personal goodwill and key person risk
  • Understand how personal goodwill differs from business goodwill
  • Learn the difference between personal goodwill in an income tax context versus an estate or gift tax context
  • Learn how personal goodwill is transferred between an individual and an entity
  • Avoid the unintended traps introduced by the Court’s adoption of personal goodwill in a gift or estate tax setting
  • Learn how to use personal goodwill in estate planning

Single Connection Policy

Admission to this event authorizes one computer and phone connection for one location. These connections may be transferred users and/or locations. Multiple concurrent connections for a single admission registration are not allowed.

Multi-User CPE Policy

Admission to this program includes one CPE certificate for one individual. Any additional listeners requesting CPE must pay a processing fee assessed at the completion of the online CE survey for this course.

CPE Processing Fees may be bypassed by entering a valid, unused CPE Authorization Code (for single event purchasers) or by logging into BVR's website (for subscribers to BVR's Training Series).

CPE Information

Prerequisites: Knowledge of Business Valuation
Program Level: Advanced
Preparation Required: None
Delivery Method: Group Internet-Based
Recommended CPE: 2 Credit Hours (Specialized Knowledge & Applications)


Business Valuation Resources is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.
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