Item | 50 Examples | SSVS1 Applies |
1 | Preparation of a business valuation for gift or estate tax purposes where the member applies the provisions of Revenue Ruling 68-609 and no other procedures | Yes |
2 | Valuation of a business goodwill for income tax purposes only where the member applies the provisions of Revenue Ruling 68-609 and no other procedures | Yes |
3 | Valuation of a family-owned business included in a marital estate, for family law purposes | Yes |
4 | Engagements to estimate value for litigation support or expert testimony purposes | Yes |
5 | Lost profits economic damages computations for litigation support purposes | No |
6 | Economic damages computations that incorporate a terminal value | No |
7 | Economic damages calculations related to the lost value of a business or intangible asset for litigation support purposes | Yes |
8 | Mechanical calculations of value (for example, using actuarial tables), where valuation approaches and methods are not used and professional judgment is not required | No |
9 | Valuing a relatively small block of publicly traded stock (relative to the total amount of the corporation stock outstanding) when the per-share price is readily ascertainable | No |
10 | Preparing a tax return using a valuation of a business that was provided by a third-party appraiser or by the client | No |
11 | Calculating the cash “hold back” requirements for tax contingencies | No |
12 | Valuing for any purpose (including gift or estate tax return preparation) a block of publicly traded stock if the analysis includes consideration of a discount for blockage, lock-up, or other contractual or marketability/transferability restrictions | Yes |
13 | Valuing stock that is not publicly traded | Yes |
14 | Computing the fair market value of assets in a charitable remainder trust (CRT) if the analysis requires the application of valuation approaches and methods and the use of professional judgment | Yes |
15 | Valuing non-publicly traded limited partnership interests | Yes |
16 | Providing advice for planning purposes (such as estate planning, personal financial planning, or merger and acquisition planning) without reference to value | No |
17 | Providing advice for planning purposes (such as estate planning, personal financial planning, or merger and acquisition planning) where the member calculates a value | Yes |
18 | Determining the income tax deductibility of interest under a non-recourse loan | No |
19 | Compliance filings that require an estimate of the value of a company and the analysis requires the application of valuation approaches and valuation methods and the use of professional judgment | Yes |
20 | Compliance filings that require an estimate of the value of a company and the client or a third-party appraiser provides the value of the subject interest | No |
21 | Compliance filings that require an estimate of the value of a company and the state (or other government agency) follows a formula rule where the application of valuation approaches or methods is not necessary | No |
22 | Purchase price allocations where the purchase price is allocated to the subject interest (that is, a business, business ownership interest, security, or intangible asset) and the client or a third party did not provide the member with the asset values | Yes |
23 | Purchase price allocations where (after the allocation of the purchase price to cash, receivables, inventory, and tangible assets), the residual amount is allocated to goodwill or going concern value | No |
24 | Purchase price allocations where the member allocates a residual amount to specific intangible assets (such as to various customer-based or supplier-based intangibles) and that allocation is based on the asset’s relative value | Yes |
25 | Computing the fair market value of an interest in a family limited partnership (FLP) for gift or estate tax purposes, without applying any valuation discounts | Yes |
26 | Computing the fair market value of assets in, or computing the required distribution of, a charitable remainder trust (CRT) where the CRT holds assets, such as an interest in a limited liability corporation (LLC) | Yes |
27 | Computing the fair market value of assets in, or computing the required distribution of, a charitable remainder trust (CRT) where the CRT only holds publicly traded stock with a readily ascertainable value | No |
28 | Asset value assignments under IRC § 704(c) where (1) one or more of the assets is a business, business ownership interest, security, or intangible asset and (2) the client or a third party does not provide the valuation | Yes |
29 | Cost segregation study to allocate the costs of building a structure between the real property and personal property components of the structure | No |
30 | Planning for income from discharge of indebtedness under IRC § 108 where (1) the company must rely on the insolvency provisions of IRC § 108, (2) one or more of the assets for which value is relevant under IRC § 108 is a subject interest (that is, a business, business ownership interest, security, or intangible asset), and (3) the company or a third party does not provide the valuation | Yes |
31 | Valuing a partnership interest where the client and the member agree that the member will apply an “average” valuation discount that the member will determine based on the results of published discount for lack of marketability studies and published case law | Yes |
32 | Informal conversations or written communications with a client regarding the alternative tax consequences of gifting versus selling a business using a presumption of a specific value of the business | No |
33 | An IRC § 482 transfer pricing study that involves the use of specific methodologies, data, terminology and documentation requirements that are provided in the IRS regulations and procedures (where methodologies and documentation requirements differ from those contained in SSVS1) | No |
34 | Settlements or negotiations of value in offers-in-compromise or tax disputes | No |
35 | Determining the value of accounts receivable | No |
36 | Determinations of value by a member employed in industry, government, or education who “moonlights” as a valuation expert witness | Yes |
37 | Assignments from an employer to an employee member not in public practice to prepare a valuation for internal financial reporting purposes | No |
38 | Personal financial planning services that include estimating the proceeds from a hypothetical future sale of the client’s business interest | No |
39 | Personal financial planning services that include estimating the proceeds from a hypothetical future sale of the client’s business interest | No |
40 | Personal financial planning services that include (1) estimating the proceeds from a hypothetical future sale of the client’s business interest and (2) the client or another party provides the current value | No |
41 | Personal financial planning services that include estimating the proceeds from a hypothetical future sale of a client’s business interest, including a general discussion with the client of valuation concepts or industry pricing multiples based on the member’s industry knowledge, where the discussion assists the client in determining a hypothetical or assumed value | No |
42 | Preparing a personal financial plan that includes an estimate of the future proceeds from a sale of the business interest at retirement, where the member estimates the future proceeds based on a current business value estimated by applying a rule of thumb multiple for the subject industry— but the member does not consider the risk factors of the subject interest or exercise other professional judgment in applying the rule of thumb multiple | No |
43 | Valuation of a not-for-profit business to be purchased by a for-profit client, for private inurement purposes | Yes |
44 | Estimation of the fair value of a debtor’s assets to determine solvency or insolvency in a bankruptcy matter | Yes |
45 | Valuation of purchased goodwill for FASB 142 intangible asset impairment testing | Yes |
46 | Valuation of purchased franchise agreements for FASB 144 long-lived asset impairment testing | Yes |
47 | Estimation of a trademark or patent fair, arm’s-length royalty rate for intellectual property infringement purposes | No |
48 | Valuation of a going concern business unit for state or local ad valorem property tax appeal purposes | Yes |
49 | Valuation of a shareholder’s stock purchase price based on the buy/sell provisions of a shareholders’ agreement | No |
50 | Valuation of a law firm partner’s capital account, based on application of the partnership agreement buy-in/buy-out formula, for family law purposes | No |