When a Company converts from being taxed as a C-corporation to being taxed as an S-corporation, a business appraisal is required to determine the Company’s current fair market value. This appraisal is required so that the built-in gains that exist as of the date of the S-corporation election can be determined and reported to the Internal Revenue Service (IRS). This is important because if the Company is sold during the statutory recognition period (which is currently five years after the date of S-corporation election but has varied from as little as five to as many as ten years in recent years), then the proper tax treatment can be applied to the Company’s built-in gains that existed prior to the S-corporation election versus the newly created gains that have been created after the S-corporation election.
“I have retained John several times to provide business valuations for estate and business planning clients. John is knowledgeable and detail-oriented. He keeps me updated throughout the valuation process and always provides a great work product.”
“John is a man of honor, respect and integrity. He goes above and beyond for his clients with honesty and accuracy. I look to John with high regards and much respect.”
“It is a joy to work with John because he does what he says he will do, communicates status with the client & advisory team, follows up as necessary with additional questions, produces a complete, professional product and delivers on time. He knows his business and, for the icing on the cake, he is a great person!”
“John worked extremely well with a client that needed a business appraisal for estate purposes, but was extremely distraught and as such no so motivated. John, with highest quality, compassion and professionalism got the appraisal done. Thank you again, John!”
“John Mack has done excellent business and estate planning appraisal work for me and my clients. He has a CPA and appraiser background, he stays up with current law in this area to comply with IRS requirements, and understands the issues for advanced estate planning.”