FLP Report: $5,000
Family Limited Partnership (FLP) Reports cost $5,000 and are impressive, persuasive reports valuing FLPs, LLCs and similar entities. The FLP Report is extremely detailed - from 70-100 pages long. Starting from figures supplied by the client valuing the FLP's underlying assets, the FLP Report goes into extensive detail articulating how the discount for lack of control and lack of marketability was determined. SPARDATA has a long and fine record in preparing such valuations.
FLP Reports are written so as to comply with Revenue Ruling 59-60 , making them suitable for a wide range of estate planning purposes. The valuation is presented in a thick, neatly bound cover that subtly discourages challenge. FLP Reports take from 6-8 weeks to prepare. Clients unable to wait 6-8 weeks should consider purchasing a Rush FLP Report which is delivered in 3 weeks or less.
A sound FLP valuation is essential because the IRS has become very strict regarding appraisal valuations of partnerships for gifting. The IRS has frequently changed positions regarding such valuations and the discounts they permit. This has caused problems for many taxpayers. SPARDATA appraisals quantify the valuation discounts and articulate the mechanism by which these discounts are explained to the IRS (that we view as the true audience for such appraisals). The report format we employ essentially “sells” the valuation to the IRS. Our process is very detailed and customized for the assets and circumstances that are unique to each partnership. Rather than taking a “cookie cutter” approach, we employ techniques to objectively and quantitatively determine the right discount to apply reflecting lack of control and lack of marketability that take into account the asset mix, the provisions of the partnership agreement, stated and “real” term of the partnership, expected cash flows and changes in asset values, age of the general partners, etc. And we have had considerable success with the IRS: typically our reports are reviewed and approved with little or no follow-up.
FREQUENTLY ASKED QUESTIONS
GENERAL
What businesses can SPARDATA value?
Can SPARDATA value companies wherever they are located?
Do SPARDATA reports stand up to IRS scrutiny?
Does SPARDATA stand behind its work?
How long will it take SPARDATA to prepare my report?
How does SPARDATA assure quality?
Does SPARDATA value Family Limited Partnerships too?
What information does SPARDATA need to value a security?
PRODUCT LINE
When is 50-100 page report appropriate?
When is a 5-10 page Update Report appropriate?
How does my client order a SPARDATA Report or an Update Report?
Can SPARDATA also value Family Limited Partnerships?
How does my client order an FLP Report or an Update FLP Report?
Must the fee be paid in advance?
Is a SPARDATA valuation appropriate when buying (say) Key Man Insurance?
I have a client/prospect interested in selling his business - Is a SPARDATA appraisal appropriate?
I have a client/prospect who has received an offerfor his business - What appraisal would you recommend?
PLACING ORDER
What contract should my client use?
Must the fee be paid in advance ?
Must the questionnaire be completed with the order packet ?
Is it the affiliatesresponsibility to collect the data from the business owner?
Does SPARDATA ever require more information than that?
What if my client disagrees with SPARDATA's value conclusion?
VALUATION METHODOLOGY
How does SPARDATA value a business ?
How can you compare a small business to a large public company?
How large is the marketability discount?
How large is the control premium?
Do you ever see a "marketability discount" and a "control premium" at the same time?
Does SPARADATA visit the company being appraised?
Does SPARDATA ever use other valuation methods?
How does SPARDATA value a tangible asset like land (as opposed to operating a business)?
What if my clients company owns real estate? Does SPARDATA value the business and the land?
If the business owns several tangible assets, does SPARDATA charge a separate valuation fee for each one?
