12 May Ask The Expert: How the IRS Will Value Your Business?
Question: How will the IRS value my estate when I die?
Actually, the executor of your estate will be responsible for filing an estate tax return soon after your death. IRS rules stipulate that your assets must be valued at “fair market value” as of the date of death, which is defined as “the price the property would bring when offered for sale by a willing seller to a willing buyer, neither being compelled or obligated in any way to buy or sell.” Some assets, such as publicly traded stocks or bonds, have a readily determinable value – the price at which it is traded on the open market. Other assets that are unique or not actively traded, such as a piece of real estate or your business, will need to be appraised by a qualified appraiser. Estate taxes will be due and payable nine months from the date of death.