FNC also provides a trading platform for closely held stock
in ethanol and sugar beet facilities through an entity called FNC Ag Stock LLC.
Together, publicly traded stock and closely held stock
accounted for 35.
If you have real estate or closely held stock
in a self-directed IRA, you have to have an independent third-party valuation," said Cindy Conger, a Little Rock investment adviser.
Types of Property in Estate Tax Returns, 2008 Publicly traded stock 24% Other real estate 11% State and local bonds 10% Closely held stock
9% Cash assets 9% Personal residences 8% Retirement assets 7% Other 22% Source: IRS, Statistics of Income, tinyurl.
Last month, I finally connected with a wealthy prospective client who received over $30 million from the sale of his minority share of closely held stock
In cases involving closely held stock
with built-in capital gain, the capital gain tax potential survives the transfer of the stock to an unrelated party; Congress has not granted any relief from that secondary tax.
His work has been concentrated in the valuation of closely held stock
and intangible assets.
2 Question #2: My client wants to donate bonds, real estate in vestment trust (REIT) units, closely held stock
, real estate, collectibles, or other assets that are not publicly traded stock to his or her private foundation or to a charitable remainder trust that will pay into that foundation.
With an initial transfer of $100,000 in closely held stock
, we have been successful in transferring multi-millions in value to future generations," Longsworth relates.
When closely held stock
is involved, dividing ownership between marital and credit shelter trusts to obtain a control premium or a minority interest discount can, in certain circumstances, maximize overall tax planning.
TABLE 1 Summary of Discounts for Illiquidity Author Security Discount Gelman (1972) Restricted stock 33% Maher (1976) Restricted stock 35% Moroney (1977) Closely held stock
75% Solberg (1979) Restricted stock 17-44% Andrews (1988) Closely held stock
10-50% Lyons and Wilczynski (1989) Closely held stock
35-40% Curtis (1991) Closely held stock
What is important is the IRS's formal recognition of the minority discount for transfers of closely held stock
among family members.