N.J. Admin. Code § 18:26-8.13 - "Close" or "family" corporation

(a) To the extent that the valuation of stock of a "close" or "family" corporation is generally incapable of being appraised on the basis of arms-length sales of stock, the Director will base the value of such corporation on the following data to be submitted with the return:

1. The basis of the clear market value reported in the return;

2. A detailed balance sheet and profit and loss statement, revised to reflect the market value of the assets thereof as distinguished from the net book value, as of the date of death of the decedent, or as near thereto as the Director may deem acceptable;

3. Detailed balance sheets establishing the net worth of the corporation for each of the three years preceding the date of death of the decedent;

4. Detailed profit and loss statements for the three years immediately preceding the date of the death of the decedent;

5. A copy or copies of any stock purchase or option agreement to which the decedent was a party at the time of his or her death;

6. A copy or copies of any insurance policies, if any, held by the corporation as beneficiary on the life of the decedent. The proceeds of such insurance are included as an asset of the corporation on the date of death in arriving at the value of the stock; and

7. If corporation owned realty, description of same, assessed and market value thereof should be shown.

Notes

N.J. Admin. Code § 18:26-8.13

Adopted by 50 N.J.R. 1624(a), effective 7/16/2018