How can I figure out my Dad's business value

Question

On his tax return?

Answer 1

This information will NOT be on his tax return.  So only he will be able to answer this quesiton.  

Ask him what is the "Net Worth" of his business.  Business value includes the market value of land, buildings, machinery, equipment, inventory, etc. Business and/or investment farm debt means only those debts for which the business or investment farm was used as collateral.

So if he owns his own semi trucking company and he owns 2 trucks valued at 50K each and owes nothing on them, he would have 100K worth in just semi trucks.  If he owes 2 semi trucks valued at 50K each and owes 50K on each, the net value of his vehicles would be zero.

Also be aware of the rules regarding small businesses:

Do not include the value of a small business that you (your spouse and/or your parents) own and control and that has 100 or fewer full-time or full-time equivalent employees