Valuing Pass-Through Entities

Appendix AChecklist

Ralph Waldo Emerson said, “The man who grasps principles can successfully select his own methods. The man who tries methods, ignoring principles, is sure to have trouble.”¹ The accompanying checklist is prepared in the spirit of Emerson's quote; it is intended as a tool to assist with the implementation of the principles presented in this book. It should not be used as a facilitator of rote calculations because an appreciation of PTE principles is necessary in order to understand the context of court decisions and how to apply the methods supporting such court decisions. This is especially true in an environment of frequently changing federal laws, income brackets, and tax rates.

The items in the following checklist are presented in the order of the book's chapters and cover many, but not all, of the issues that need to be considered in connection with the valuation of a PTE ownership interest. Professional judgment, applicable valuation standards, and case-specific facts and circumstances will dictate the additional procedures and considerations required in a given matter.

Printable copies of this checklist in Word format can be accessed at Eric J. Barr, Valuing PTEs, www.valuingptes.com.

Valuing PTEs Checklist

Yes	No	N/A
Introduction
1. Identify the PTE to be valued.
2. Understand all rights, benefits, and restrictions of the PTE ownership interest ...