Masterclass in Normalizing Compensation
BVR's Interactive Web Workshops
Wednesday, August 26, 2020
10:00am-2:00pm PT • 1:00pm-5:00pm ET
The recording and transcript for this webinar are available to subscribers:
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- What makes owner pay one of the most interesting topics in business valuation?
- Tips to get started
- Three approaches
- Gathering the facts
- Questions for compensations
- The Factors - 9 examples
- Goodwill - professional or enterprise?
- Comparability data- deep dive
- Other sources of compensation data
- Arm’s length?
- Catch-up pay
- Employee benefits
- Personal guaranty of corporate debts
- Collateral damage
- Case study of a custom home builder
- In-depth analysis of the owner using the market and income approaches
- In-depth analysis of related parties (owner’s gown children) using the cost and market approaches
- When to apply professional judgment: Adjusting compatibility data
- Explore sources of data, defensibility and reliability
- IRS Reasonable Compensation Job Aid
- Suggested readings by the IRS
- IRS Reasonable Compensation Job Aid- deep dive
- Section I: Purpose, Background and Case Coordination
- Section II: Identifying a Reasonable Compensation Issue
- Section III: Developing Reasonable Compensation Issues
- Section IV: Taxpayer Arguments for Reasonable Compensation Issues
- Section V: Consideration of Penalties
- Section VI: Focusing Specifically on Not-For-Profits
- Beware IRS and penalties on appraisers
- Who decides on penalties on appraisers at the IRS
- Example on an estate valuation
- When is it an issue with the IRS?
- What is compensation?
- Fringe benefits, bonuses and incentives
- Market, income and cost approach to reasonable compensation
- Key indicators for market approach
- How to begin finding information
- Review of information
- Sources of information
- Income approach
- Cost approach
- Five common concerns
- Additional thoughts on loans
- Exempt organizations
- Example highlights
- Important take away information
- Learn how the IRS and Tax Court approach reasonable compensation
- Understand how to avoid triggering an audit and how to respond when compensation amounts are challenged
- Know where to find and how to sort compensation comparability data
- Learn how to determine reasonable compensation from national experts in the field
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Delivered as an electronic download approximately four weeks after the program has aired, each Training Pack includes:
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- All presentation visual aids and handouts
- All ancillary reading materials suggested by our presenters
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