Cannon Estate Planning Teleconference Series

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Valuation Vendetta: 2704 Regs Seek to Dump Discounts

On Thursday, August 4, the IRS published proposed new regulations under Section 2704 of the Internal Revenue Code. These proposed regulations, if finalized in their current form, will have a monumental impact on tax planning for many estates potentially subject to estate tax. In particular, valuation discounts for certain intra-family transfers of equity in corporations and partnerships, for many years widely available, may be severely limited going forward. In this teleconference, Clary Redd and Turney Berry will explain what Section 2704 was intended to address when it was enacted, how it has worked up to now and what these new proposed regulations seek to accomplish.

Among other things, Clary and Turney will discuss:

  • Big change in definition of "applicable restriction"
  • New category of "disregarded restrictions"
  • New three-year rule
  • Effect of nominal non-family held interests
  • Operating businesses vs. entities holding passive investments
  • Possible court challenges
  • Effective date

Time and Location


    August 30, 2016


    12:30 PM


    Marcum LLP
    750 Third Avenue
    11th Floor
    New York, NY 10017