Our lead article is a Q&A with our own Tim Lee about what estate planners need to know in working with business appraisers to help their clients with the 2012 gifting opportunity. Also included is an article discussing the pros and cons of converting to an S corp. Finally, we review Wimmer v. Commissioner and share information resources from around the web of possible interest to you.

The 2012 Gifting Opportunity

What Estate Planners Need to Know to Prepare | Q&A with Tim Lee

"Appraisers are your gatekeepers to gift tax deadline." -- Reuters | August 7, 2012 

In this Q&A, we interview Timothy R. Lee, ASA (Tim), senior vice president and leader of Mercer Capital's Corporate Valuation Group. Tim has over 18 years of experience valuing companies and asset holding entities of all sizes. In addition, he is the author of A Reviewer's Handbook to Business Valuation. 

The Pros and Cons of Electing an S Corporation Status

by Nicholas J. Heinz, ASA & Wendy S. Ingalls, CPA/ABV, CBA, ASA

If your business continues to be structured as a C corporation it is well past time that you at least investigate the possibility of converting to S corporation status.  A sub chapter S election for most companies can substantially enhance shareholder benefits, both on an interim basis and at the time of an eventual sale of the company.  This article provides the pros and cons of an S corporation election.


Tax Court Case Update

Wimmer v. Commissioner

Mercer Capital reviews recent Tax Court cases of interest to estate planners and other professional advisors. In this issue, we review Wimmer v. Commissioner - a present interest victory for the taxpayer.


Links You Might Find of Interest from Around the Web


As a bonus for Value MattersTM subscribers, we update key economic indicators found in Mercer Capital's National Economic Review and present them for your information.

You are free to reproduce these charts with attribution. 

The National Economic Review ("NER") is an overview of the major factors affecting the US economy. 

Mercer Capital began publishing the NER over 20 years ago. Each full report includes discussions of the current and expected performance of the national economy, interest rates, employment, inflation, the stock and bond markets, and construction, housing and real estate.

Information provided for Value MattersTM subscribers includes:

  • Real GDP
  • Unemployment Rates
  • Trends in Leading, Coincident, and Lagging Economic Indicators
  • Housing Starts
  • Broad Market Index Cumulative Price Returns


Understand the Value of Your Trust Company


Understand the Value of Your Insurance Brokerage

Mercer Capital on the Road

September 10 - 12
The AICPA National Conference on Banks
Washington, DC
Andrew K. Gibbs, CFA, CPA/ABV
Jay D. Wilson, Jr., CFA

September 20 - 21
Notre Dame Tax & Estate Planning Institute
South Bend, IN
Nicholas J. Heinz, ASA
Brooks K. Hamner, CFA

October 15 - 19
Southern Federal Tax Institute
Atlanta, GA
Matthew R. Crow, CFA, ASA
Laura J. Stevens, CFA

November 8 - 9
ESOP Association Conference
Las Vega, NV
Nicholas J. Heinz, ASA
Timothy R. Lee, ASA
Wendy S. Ingalls, CPA/ABV, CBA, ASA

VOLUME 2012-04

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Copyright © 2012 Mercer Capital, All rights reserved.

Value Matters (TM) is published six times a year and does not constitute legal or financial consulting advice. It is offered as an information service to our clients and friends. Those interested in specific guidance for legal, tax, or accounting matters should seek competent professional advice. 

Mercer Capital is a national business valuation and financial advisory firm. We offer a broad range of valuation services including corporate valuation, gift and estate tax valuation, buy-sell agreement valuation, financial reporting valuation, ESOP and ERISA valuation, and litigation and expert testimony consulting. In addition, Mercer Capital can assist with transaction-related needs, including M&A advisory, fairness opinions, and strategic alternatives assessment.

To discuss a valuation issue in confidence, please contact us at 901.685.2120 or via email.

Tim Lee

Nick Heinz

Travis Harms

Jim Graves

Wendy Ingalls

Matt Crow

Chris Mercer