As per IRC Section 1374 , a corporation making an S-corp election needs a valuation to determine the built-in gains the appreciation in asset value from the period of time when the entity was a regular C-Corp as of the date of S-Corp election. This prevents C-Corp entities from saving taxes by converting into S-Corps just before the sale of business or appreciated assets.
CredVal provides comprehensive valuation support to clients opting for S-Corp election. With our extensive experience in business and intangibles valuation, our highly qualified team of CFA &MBA professionals, and our unique ability to integrate the insights from business research and intellectual property research into our valuation analysis,CredVal’s appraisal reports provide clients with defensible valuation opinion in case of a potential IRS challenge at a later date.