Tax Valuation

Clients often seek our services for tax purposes. Many times, these purposes are to settle a tax dispute, often arising because parties disagree on an asset’s worth. By hiring a third party to get to the heart of an asset’s worth, clients eliminate biased opinion and can come to a fair resolution. At Pellegrino & Associates, we have worked with many clients to determine an equitable amount of tax that resulted in a fair conclusion.

One such project involved The Estate of Kurt Vonnegut, which hired Pellegrino & Associates to determine an equitable number regarding Kurt Vonnegut’s work. This was a classic case of when a tax authority indicates works are higher in value than what the taxpayer thinks the works are worth. It is also a perfect case that indicates determining an equitable amount takes many paths to come to the right conclusion. In fact, for a fair IP valuation conclusion, IP valuation analysts must consider many factors, which is often outside the expertise of a tax authority. In this particular case, Pellegrino & Associates had to consider Vonnegut’s reputation, literary works, artwork, and overall brand. We reviewed thousands of data points to measure the value of Vonnegut’s works. Vonnegut’s works still had active government protection, open royalty obligations with publishers and other companies, and expected future revenue-generating potential. Pellegrino & Associates also had to factor in unexpected avenues for future income and the risk associated with waning public interest in Vonnegut’s works. Backed with all the considerations and modeling of our work, we were able to present an equitable number to the client.

But not all tax valuations revolve around a conflict. For instance, we provided valuation services to an international company that was moving its assets to another country. Its assets consisted of software and trademarks. The company needed to know the value of these assets for tax purposes in the new country.

Since taxes can be costly, ensuring that the proper tax amount is applied to the true value of an asset makes good business sense. Contact us to learn more about our tax valuation services.