Treasury Eases Burden on Family Owned Businesses

 October 26, 2017

re you part of a family-owned business? The Treasury Department recently announced that it will pull several tax regulations including the proposed Section 2704 rules that aim to limit valuation discounts for estate, gift and generation-skipping transfer tax purposes. A press release set forth by the Treasury, said the regulations would have had hurtful consequences on family-owned and operated businesses by limiting minority and marketability valuation discounts and making it not only difficult but costly for a family to transfer their businesses to the next generation.

Section 2704
Congress enacted Section 2704(b) of the Internal Revenue Code in 2016 in an effort to limit the valuation discounts for gift and estate tax purposes for family owned businesses.