The Tax Cuts and Jobs Act Could Impact Intangible Valuation
Thomas Amendolari, a senior economist at the Treasury Department, recently stated that many of the fundamental aspects of determining the discount rate, for purposes of valuing intangible transfers under the section 482 regulations, may be affected by the 2017 TCJA. While the economic effects of the TCJA may increase discount rates, Amendolari noted that it is not yet certain and further noted that rising discount rates do not necessarily mean the overall valuation for intangibles should be lowered, because pre-tax cash flows may also be affected.
Read more: TCJA’s Impact on Intangible Valuation Is Uncertain