From Mike’s Book Business Appraisals and the IRS (2013) Mike elaborates on how to address reasonable compensation when addressing this issue for federal tax valuation purposes coupled with his most recent work assisting experts in this field. This session covers material that a beginner in the field to the most seasoned expert will find of interest. After providing background material the factors to consider, the approaches taken, the most pertinent court cases key points are presented. Five key consideration are brought to light on this issue. The question of how to treat loans from shareholders to private corporations is addressed. Not for profit entity considerations are provided. In the end the participant will take away tools to use when addressing this issue and be able to better prepare an analysis of the issue going forward.
