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Top_Main_ArticlePREPARING FOR THE POTENTIAL END OF VALUATION DISCOUNTS IN ESTATE PLANNING
 
The IRS is again attempting to curtail or even eliminate completely the use of valuation discounts in estate and gift tax planning. When valuing minority interests, consideration is often given as to whether or not a discount for "lack of control" and/or a discount for "lack of marketability" is warranted. This is handled on a case by case basis and is frequently seen when valuing interests in family limited partnerships (FLPs) and limited liability companies (LLC). These discounts reflect the fact that the minority interest holder cannot influence control over the entity (i.e. liquidate assets or set compensation levels) nor is there an easy mechanism to convert their investment into cash (There is no public exchange for closely held businesses). When the facts and circumstances support their use, these discounts help quantify the fair market value of the minority investment and often reflect significantly less value than a simple pro-rata allocation of the control value. When done properly, this provides a supportable way of maximizing the transfer of wealth utilizing the available unified credit or annual exclusions and/or minimizing the tax to the estate on any remaining taxable portion.
 
Over the years, the IRS has continually fought these tax planning strategies, particularly when the underlying assets are highly liquid investments and to date has not had much success in wide spread regulation to eliminate or restrict the use of such discounts. Nonetheless, the current proposal could substantially impact your ability to maximize the transfer of family wealth in the future. It is important to review your estate plan now and determine the impact that proper application of these discounts could have on your estate before it's too late. Contact your professional at UHY Advisors in Detroit 313 964 1040, Farmington Hills 248 355 0280 or Sterling Heights 586 254 8141, or visit us on the web at www.uhy-us.com.

Events
EVENTS CALENDAR
 
10/22 UHY LLP ANNUAL MANUFACTURING OUTLOOK
Save the date for Manufacturing Outlook "Built To Compete: Embracing Risk For a Sustainable Future". Join us at The Detroit Athletic Club to learn more about developing industry trends including government policy and legislation, economic forecast, corporate governance, technology, business sustainability, and staying competitive.

Thursday October 22
7:30AM-11:30AM

CPE credit is available. Shinola watch to be auctioned off to benefit The Empowerment Plan. Pre-registration for this complimentary program is required. Breakfast will be provided. Space is limited. Multiple registrations are welcome. To RSVP contact Jessica Dalessandro. Formal invitation to follow.

A playback of last year's seminar, which had record attendance, can be found in our video library. You can also download an electronic copy of the presentation slides.

11/6 PLANNING FOR YOUR TAX EXEMPTION IN 2016
Take advantage of the substantial savings your company is eligible for beginning January 1, 2016 as a result of the August 2014 MMA-led successful ballot campaign to eliminate the Personal Property Tax (PPT). Learn the steps you need to take to file for your exemption and start saving on the local manufacturing PPT. Join Mike Johnston, MMA Vice President of Government Affairs, on Friday, November 6 plus experts from the Michigan Department of Treasury and Honigman, Miller, Schwartz, and Cohn, LLP. Attendees will learn necessary filing deadlines, coming early 2016, and the required information to qualify for exemption.

Who should attend? Manufacturing owners and managers, controllers, tax managers, accounting and tax staff, CFOs and others interested in state tax.

To register contact Sarah Pytel at pytel@mimfg.org or 517 487 8521. This program is co-hosted by Michigan Manufacturers Association and the Sterling Heights Regional Chamber of Commerce. The cost is $75 for MMA members and $125 for non-members. UHY LLP is located at 12900 Hall Road in Sterling Heights. The training facility is on the fourth floor.

11/12 UHY LLP ANNUAL CONSTRUCTION OUTLOOK
Save the date for Construction Outlook 2016! Join us at UHY's training center in Farmington Hills to learn more about developing industry trends including employee retention through compensation and long-term incentives, management and union relations, current tax updates you need to know and the latest on the Affordable Care Act.

Thursday November 12
7:00AM-9:30AM

CPE credit will be offered. Pre-registration for this complimentary program is required. Breakfast will be provided. Space is limited. Multiple registrations are welcome. To RSVP contact Drew Matthews. Formal invitation to follow.

SAVE THE DATE! MORE UHY EVENTS ARE JUST AROUND THE CORNER...
12/2 UHY LLP Annual Accounting and Regulatory Update

 SpecialAnnouncements
SPECIAL ANNOUNCEMENTS   
 
UHY LLP PARTNER, JERRY GRADY, RECOGNIZED AS VOLUNTEER OF THE YEAR BY CANTON COMMUNITY FOUNDATION
Jerry Grady, a partner from UHY LLP's Michigan practice, was recently recognized as 'Volunteer of the Year' from the Canton Community Foundation in participation with the Plymouth Chamber of Commerce. Jerry received the State of Michigan certified award from State Representative Kurt Heise. The award was presented to Jerry at the Annual Volunteer Recognition Ceremony at the Plymouth Community Chamber of Commerce event. He has served on the Canton Foundation Board for the past six years as well as having served multiple committees in the Foundation which included help with development, finance, governance, golf and fundraising events, etc.

"The past three years I had overseen our Foundation losing our director of 20 plus years who resigned suddenly and I took over as acting director for a year running the Foundation and the staff. We put a new director in place and she lasted six months and thus I had to throw my hat back on again. The Foundation was told by many in the community that it would not survive when we lost our long serving director and obviously when the next one left they thought for sure the lights would go out. Well they never heard the phrase 'There is no Q in Grady'," jokes Jerry. "We actually have become a stronger and more solid Foundation during this turmoil and have done some amazing things since obstacles were removed and we could focus on impacting the community. In addition, it allowed us to take a step back and create a vision and strategy with a clean white board to work on."

During his time served on the board, the Foundation has created and impacted the community by awarding $500,000 to the community. "I have led a board of 15, an executive committee of four, and a staff of three for the past three years and they told me that without my leadership, my dedication, my service hours, and my vision, the Foundation would have had to fold with another or have just collapsed. I guess with all the hundreds, if not thousands of hours I have put into this over the past six years, they felt I was deserving," he explains. "I was taught at a young age that when you are blessed, you should give back to the community in any way you can. I have always seen that the more I gave of my time, the more blessed I find myself, not just in monetary ways, but in ways you only feel when the impact is felt by others. My family has always lived the Three T's model... time, talent and treasure."

Congratulations, Jerry!

SA2UHY ADVISORS MI, INC. EARNS MBPA 'BEST & BRIGHTEST COMPANY' HONOR FOR 12TH STRAIGHT YEAR
UHY Advisors MI, Inc. has been voted by the Michigan Business & Professional Association (MPBA) as one of 2015's best and brightest companies to work for in Metropolitan Detroit for the 12th year in a row! Only companies that distinguish themselves as having the most innovative and thoughtful human resources approach can be bestowed this honor.

"We are honored to recognize the efforts of this year's 'Best and Brightest' companies. These companies have created impressive organizational value and business results through their policies and Best Practices in human resource management. This award has become a designation sought after by hundreds of Metropolitan Detroit area companies and is a powerful recruitment tool in the drive to attract and retain exceptional employees," said Jennifer Kluge, President and CEO of MBPA.

The Best and Brightest Companies to Work For® is a program of the Michigan Business and Professional Association that provides the business community with the opportunity to gain recognition, showcase their best practices and demonstrate why they are an ideal place for employees to work. This national program celebrates those companies that are making better business, creating richer lives and building a stronger community as a whole. It is presented annually in several markets including Atlanta, Boston, Chicago, Dallas, Detroit, Houston, Milwaukee, San Diego, San Francisco Bay Area, and Nationally. Nominations are now being accepted for 2016. Visit www.101bestandbrightest.com to obtain an application.

CareersCAREERS AT UHY
Are you ready to take charge of your career path? Be sure to visit our careers page for the most up-to-date listings or contact Yolanda Rountree. Current opportunities in our Michigan offices include:
  • Audit Manager, 7+ years of experience, manufacturing experience is highly preferred
  • Audit Manager, 7+ years of experience, SEC experience is highly preferred
  • Audit Senior Accountant, 5-7 years of experience, CPA required
  • Internal Audit Risk & Compliance Manager, 7+ years of experience
  • R&D Tax Specialist, 7+ years of experience
  • Tax Manager, 7-10 years of experience
  • Tax Senior Consultant, 4-5 years of experience, Big 4 experience is required
  • Tax Senior Accountant, 5-7 years of experience, CPA required
  • Director of Litigation, testifying experience required municipalities
  • Senior Associate (Corporate Finance), 2-4 years of Big 4 experience highly preferred

Published by UHY LLP News.   

Copyright © 2013 UHY LLP. All rights reserved.

 

Our firm provides the information in this newsletter as tax information and general business or economic information or analysis for educational purposes, and none of the information contained herein is intended to serve as a solicitation of any service or product. This information does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisors. Before making any decision or taking any action, you should consult a professional advisor who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.    

 

UHY Advisors, Inc. provides tax and business consulting services through wholly owned subsidiary entities that operate under the name of "UHY Advisors."  UHY Advisors, Inc. and its subsidiary entities are not licensed CPA firms.  UHY LLP is a licensed independent CPA firm that performs attest services in an alternative practice structure with UHY Advisors, Inc. and its subsidiary entities. UHY Advisors, Inc. and UHY LLP are U.S. members of Urbach Hacker Young International Limited, a UK company, and form part of the international UHY network of legally independent accounting and consulting firms. "UHY" is the brand name for the UHY international network. Any services described herein are provided by UHY Advisors and/or UHY LLP (as the case may be) and not by UHY or any other member firm of UHY. Neither UHY nor any member of UHY has any liability for services provided by other members.