Family-Controlled Corporate Shares 415-25-10-45

(Revised 11/02 ML #2829)

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Households with an interest in family-controlled corporations own shares in that corporation which may have equity. The household is responsible for providing information regarding the equity value of these shares, the name and credentials of the appraiser who determined the value, and a description of the basis used in establishing the value.

 

Suggested formula:

(Assets - liabilities )/Outstanding share) X client’s shares.

 

This formula will give you a rough estimate. However, the corporation's "equity" may be meaningful only if the corporation assets are liquidated. If the applicant is a minority shareholder, any computed "equity" may be meaningless. If you are unsure what to count, contact the State Office for assistance.