FMV of Medical Practice Stock Donated to Charity

Written by Reed Tinsley, CPA | July 24, 2008

While consolidating various medical service corporations into a single medical practice group, taxpayers donated stock to a charity and claimed charitable contribution deductions of $401 per share. Because taxpayers' valuation experts erroneously treated the corporation as a going concern, the Tax Court declined to rely on their reports in determining the FMV of the donated stock. Agreeing with the IRS's expert that the asset-based approach was a more accurate valuation method, the Tax Court valued the stock at $37 per share and imposed accuracy-related penalties on the taxpayers. Bradley Bergquist , 131 TC No. 2 (Tax Ct.).

About the Author

Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.

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