tax Archives - Horn Valuation

Should You Skip a Valuation for an Estate?

January 13, 2026 by josh

Here’s the scenario. One of your parents dies and they own a business. Should you value the business for their estate? Maybe. I want to lay out the case for giving this a closer look.

Family Disputes

I’ve worked with a lot of executors and trustees, and I’ve seen these:

The business is usually one of many assets.
The business is often the most difficult asset to value.
The business may be the most valuable asset in the estate or it might be worth nothing.
The more beneficiaries, the more likely there will be conflicts.
If the business isn’t valued by a professional, someone will guess the value.
Guesses lead to fights and mistakes that cost time and money.

A good business appraiser should put value disputes to rest. It will also help you correctly allocate and distribute assets consistent with your family member’s will or trust.

Estate and Income Taxes

While it’s common today for many estates to be under the Federal estate tax exemption and not be required to file a Form 706, state estate or inheritance tax can be another story. You cannot accurately make Federal or state estate tax determinations if you don’t have values for all the assets and liabilities, including the business. The risk from unpaid estate taxes, interest, and penalties usually extends to the beneficiaries indefinitely. That means your personal assets are at risk if the proper filings and payments aren’t made.

Whether the business is retained or sold, income taxes after death are often computed based on the value of the business at death. Stated another way, without a business valuation, you will often be unable to estimate anyone’s tax basis in the business on the date of death. This can become particularly complex if the business is retained by multiple beneficiaries after death. A surviving spouse and children who continue to own the business usually add more complexity.

Parting Thoughts

Hiring a qualified business appraiser will cost money, but it’s important to consider your risks of not hiring one. Consult an attorney and a business appraiser, both with significant business estate experience. This meeting should be conducted with both professionals. After meeting and reviewing documents, they can recommend how to proceed. By the way, it’s a great idea to have these meetings before your business-owning family member passes away. Your family member can then update estate documents to match their wishes before it’s too late.

Josh Horn, CPA, CVA
Horn Valuation

Sign up for this blog here if you’re interested in business valuation for family business succession and dispute settlement. My clients are business owners and attorneys. You can email me at [email protected] and connect with me here on LinkedIn, Facebook, Twitter, YouTube and Instagram.

“Once-in-a-lifetime events demand an expert.”

Don’t Let the Tax Tail Wag Your Value Dog

August 17, 2020December 10, 2019 by josh

It’s tax planning season and you may be looking at options. Don’t let the tax tail wag your dog and destroy business value with these three mistakes. Consider three alternatives instead. Secure link here or YouTube here:

Thanks,
Josh

Can I Help You?
Hi, I’m Josh Horn, CPA/ABV, CVA of Horn Valuation. I help with business valuations in friendly or unfriendly situations. I also help owners build valuable companies. My clients are business owners and attorneys. If you’d like more information, email me at [email protected], or call me at 217-649-8794.

I’m a licensed Certified Public Accountant (CPA) and double-credentialed in business valuation (CVA & ABV). I’ve been a tax and business consultant in a top 100 CPA firm and a controller in a large international company. I’ve also valued and been the primary adviser to multi-million dollar and small companies in various industries.

“Once-in-a-lifetime events demand an expert.”
Josh Horn, CPA, Certified Valuation Analyst and Accredited in Business Valuation

Are Those Losses Real? This is How You Find Out

August 17, 2020September 24, 2018 by josh

Hey everyone,

Whether you’re running a business or buying one, it’s important to understand losses. By “losses”, I mean when expenses exceed sales. In simplest terms, it’s when the income statement or profit and loss shows a negative number. You don’t need to immediately panic. You need to review the causes.

Here’s my list for non-accountants:
-> Are there personal expenses? (Pull those out).
-> Is it a Tax loss or a Cash loss? (You care about Cash).
-> Cash losses can’t keep going unless more money is invested or borrowed.

Or, stated another way…
-> Is the business worth more “alive than dead?” (Supporting a family without more debt, capital, or fraud).
-> How much cash is going in the owner’s pocket? (Assuming they’re following the rules).

Yes, there’s a lot more I could teach you about accounting if you had the time. But you don’t, so this will put you ahead of 90% of the world.

Thanks,
Josh

Can I Help You?

Hi, I’m Josh Horn, CPA, CVA of Horn Valuation. I help with business valuations in friendly or unfriendly situations. I also help owners build valuable companies. My clients are business owners and attorneys. If you’d like more information, check out my website hornvaluation.com, email me at [email protected], or call me at 217-649-8794.

I’m a licensed Certified Public Accountant (CPA) and credentialed in business valuation (CVA). I’ve been a tax and business consultant in a top 100 CPA firm and a controller in a large international company. I’ve also valued and been the primary advisor to multi-million dollar and small companies in various industries.

“If you’re not working on business value, who is?” Josh Horn, CPA and Certified Valuation Analyst

Don’t Gamble with Divorce Tax Returns

June 26, 2020September 17, 2018 by josh

If you’re concerned about using a business tax return for child support, maintenance, and assets in your divorce case, you’re in the right place. It’s a dangerous gamble unless you know what to do. Learn how you can spot the seven red flags and fix them. We begin with a typical business tax return, walk through the red flag adjustments step-by-step, and quantify the impact. You’ll be amazed how much you could be leaving on the table.

The Seven Red Flags of Business Tax Returns guide is here. This is a bullet-point instruction document that defines the seven red flags, provides guidance on why the red flag matters, and gives you detailed steps to fix each red flag. Don’t skip these steps if you’re using a business tax return in divorce.

Secure link to the video here or on YouTube here:

Call me if you would like to discuss valuing a business in divorce or litigation.

Thank you,
Joshua L. Horn, CPA, CVA
Horn Valuation
Phone: 217-649-8794
Email: [email protected]
2901 Boardwalk Dr., Suite A, Champaign, IL 61822

Horn Valuation is for attorneys, judges, and business owners who believe there’s an easier way to settle business disputes and want to work with a valuation expert using fixed fees. I’ve been a CPA since 1999, a certified valuation analyst since 2008, and valued mom and pops to multi-million-dollar businesses. Call me today if you’re interested in working together on a valuation solution.