The United States Treasury has moved a step closer to tightening the way family limited partnerships are valued for tax purposes. Many estate and business planners are encoring their clients to accelerate planning for purposes, or risk paying additional tax.
Earlier this month, the Treasury Department issued “proposed final regulations” to eliminate a provision in the tax code that effectively allows wealthy people to greatly discount the the value of shares in a family limited partnership.
The Internal Revenue Service will hold a hearing on December 1, 2016 to consider the new regulations, which would strip away the discount for all family limited partnerships regardless of what they hold.
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