By what “standard of value” should a business be appraised? That may sound like a peculiar question at first blush, but it has a significant meaning when determining the value of a private business interest. Most often, people who are unfamiliar with the nuances of business valuation recognize the term “fair market value” (FMV). However, there…

Every year, the United States experiences natural and manmade disasters, ranging from hurricanes and earthquakes to wildfires and electrical grid failure. If you’re unlucky enough to suffer a disaster-related loss, you’ll need to understand the federal income tax rules to determine whether you’re eligible for a casualty loss deduction. Personal Casualty Loss Deduction Basics You can potentially…

When valuing a business, it’s important to clearly identify the appropriate premise of value. There are two basic options: going concern value or liquidation value. In general, liquidation value sets the floor for a company’s value. When a company is “worth more dead than alive” — such as in a Chapter 7 bankruptcy filing — liquidation…