Speculative, Viral, and Volatile: Valuation Considerations for Cryptocurrency Assets
As interest in niche investment assets continues to grow, valuation professionals may be presented with the challenge of valuing highly illiquid cryptocurrency assets. These assets face high regulatory scrutiny and low volume in public markets, offering a unique mismatch of high paper value and poor capability to exchange for cash. However, valuation professionals should consider these assets in the same way they would approach the appraisal of other illiquid assets, with several well-tested tools at their disposal.
Company Stock Repurchases at Fair Market Value May Deliver Value Accretion for Remaining Shareholders
When a company redeems its stock at fair market value, the value of the company’s stock immediately afterward may increase. To some, this phenomenon is surprising, but the effects of stock redemptions and possible stock accretion may benefit the sellers, the remaining shareholders, or both.
Qualified Appraisals and Charitable Contribution Deductions: The Lessons of Hoensheid
In Estate of Hoensheid v. Commissioner, the U.S. Tax Court found, among other issues, that a donation of stock made in anticipation of the sale of the underlying business did not qualify for a charitable contribution deduction because the appraisal of the donated property did not meet the requirements of a qualified appraisal.
Related Articles
Perspectives & Insights
April 2024 Perspectives
- Control Considerations in the Valuation of a 50 Percent Ownership Interest
- The Expatriation Tax: How to Present Assets to the IRS When You Say Goodbye to the United States
- The Valuation of Controlling Ownership Interests in the Context of Gift Tax Planning
January 2024 Perspectives
- The Applicability of Discounts for Lack of Marketability on Controlling Ownership Interests
- Higher Interest Rates and Tax Exemptions May Maximize Benefits in Gift and Estate Tax Planning
- Key Person Considerations When Valuing Private Companies in a Gift and Estate Tax Context
October 2023 Perspectives
- Preferred Equity in a Rising Interest Rate Environment
- Considerations for Valuing the Stadium Seat Licenses of Sports Teams for Estate Tax Purposes
- Convertible Bonds as a Component of a Company’s Capital Structure