If passed by Congress, pending legislation will eliminate the ability to discount the value of FLP gifts.
Now, if you give a family member a minority share in your business, an appraiser legally can discount its value.
There are still a myriad of techniques that can be used to discount the value of stock for transfer purposes.
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The interest rate allows me to discount the value of some cash payment in the future to the value the principle would hold for me if I had it now.
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Applied Materials trades at a 15% discount to the value of its current EVA, KLA-Tencor at a 29% discount, and Intel at a 10% discount.
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Worse, depositors have to forgo any value craftsmanship may have added to their gold, and take a further 10% to 15% discount on its value as metal, to pay for the cost of melting.
"It's been very difficult to find stocks that sell at a discount to fair value, " he says.
He then screens for those selling at the greatest discount to intrinsic value.
The discount in the value of the XRT may be all some strategists needed to spur them back into the retail sector.
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The IRS recognizes a discount on the value of limited partnership interests.
This market has burgeoned as increasingly debt-laden companies sell paper at a 13-14% discount to face value in an effort to stay afloat.
Analyst Fustier points out that BP trades at a 22% discount to net asset value, compared with only a slightly narrower 19% discount for the other supermajors.
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Lee had an attractive offer for the stores: He would pay them cash on the line if they would sell him gift certificates at about a 10% discount off face value.
Even if it did, he figured, Global Ship Lease was trading at such a big discount to book value that liquidating its fleet would result in a nifty profit for shareholders.
Frequently, homeowners in trouble with the banks are willing to sell their homes to private buyers at a discount to market value in order to preserve what little equity they have left.
Unfortunately, the proposed Silver Lake transaction falls significantly short of that, and instead appears to be an effort to acquire Dell at a substantial discount to intrinsic value at the expense of public shareholders.
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Penney has some tough sledding ahead, but that it was the only stock in his portfolio that could return 15 times his investment because it trades at a discount to the value of its real estate and inventory.
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You can transfer stock in a startup before it appreciates, or stick real estate in a family limited partnership and then give partnership shares at a discount from the value of the underlying assets (FORBES, Apr. 17 ).
On a price to tangible book value, BAC stacks up well against its competition on a valuation basis, and trades at a bigger discount to tangible book value than all but Citibank.
Co-managed by Bruce Berkowitz, Larry Pitkowsky and Keith Trauner, this concentrated multi-cap value fund has succeeded by requiring a substantial discount to their estimate of intrinsic value.
Though Staples is trading at a smaller discount to its estimated value, it deserves your attention.
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It trades at a 5% discount to net asset value and has a 1% expense ratio.
Corl is confident the stock is at a 30% discount to net asset value.
Skywest ( NASDAQ:SKYW) This airline company is selling at about a 40% discount to its book value.
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Of course, managers could always buy back their shares given the growing discount to net asset value.
At its recent price, SWZ trades at or near a 14.8% discount to the underlying value of its portfolio.
Enron shares are trading at a 19% discount to their Dynegy value.
But they say even at half that rate both firms are trading at a steep discount to their book value.
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Closed-end junk funds, meanwhile, have gotten doubly attractive as yields have risen along with the discount to net asset value.
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