18:26-8.15 "Close" or "Family" corporation

18:26-8.15 "Close" or "Family" corporation

   (a) The appraisal of any stock of a decedent in a "closely held" or "family" corporation, incapable of being valued on the basis of bona fide sales, is based on the following data to be submitted with the return:

1. 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;

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

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

4. A statement establishing the salaries paid to each officer of the corporation for the five years immediately prior to death;

5. The nature of the business in which the corporation is engaged;

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

7. 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;

8. The number of shares of stock of all classes issued and outstanding and the par value thereof;

9. Statement of dividends paid, if any, for a five year period prior to decedent's death;

10. List of stockholders and number of shares owned by each;

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

12. Basis for determining that clear market value is the value reported in the return.