Practice valuation · Gift & Estate Tax
Medical Practice Gift & Estate Tax Valuation in California
When the IRS is the audience, "approximately right" is a liability. File with a valuation built to adequate-disclosure standards.
- CVA Certified NACVA Valuation Analyst
- USPAP Compliant Appraisal Reports
- 500+ Valuations 45+ specialties
The IRS Reads These Reports Carefully
Gifting practice interests to children entering medicine, funding a trust with shares of the group, or valuing a deceased physician's interest for the estate — each requires a valuation that satisfies IRS standards for a qualified appraisal by a qualified appraiser. Get it right and the statute of limitations starts running on a well-disclosed return; get it wrong and you've invited examination, penalties, and a revaluation years later on the IRS's terms. Nechay Advisors prepares Detailed Reports for gift and estate purposes: USPAP-compliant, fully documented, and structured to support adequate disclosure under the regulations.
Issues Specific to Tax Valuations
- Fair market value, strictly defined. Revenue Ruling 59-60's hypothetical willing buyer and seller governs — not what a strategic acquirer might pay. The discipline of that standard runs through every assumption.
- Discounts that hold up. Transfers of minority, non-controlling practice interests typically warrant discounts for lack of control and lack of marketability. The IRS challenges unsupported discounts aggressively; ours are derived from the entity's actual agreements, distribution history, and empirical studies — and documented accordingly.
- Valuation date precision. Gift date or date of death (or alternate valuation date) controls. We value as of the required date using only information knowable at that date.
- Entity and succession context. California's corporate practice of medicine limits who may hold shares of a medical corporation, which directly shapes marketability analysis and succession planning. We coordinate with your estate counsel and CPA so the appraisal fits the plan, not the other way around.
When to Do This
The best time is before the transfer — valuation drives how many units to gift against exclusions and lifetime exemption. For estates, deadlines run from the date of death; engage early so the appraisal never becomes the bottleneck for the 706. Surgery center interests are a frequent gifting asset with their own analysis — see ASC gift & estate tax valuation.
A clear, three-step process
- 1
Discovery Call
A confidential conversation about your practice, your timeline, and the purpose of the valuation. We scope the right report tier before you commit to anything.
- 2
Financial Analysis & Interviews
We interview you and normalize your financials. Owner compensation, one-time expenses, and related-party leases all get restated. Typical turnaround: 1–2 weeks.
- 3
Certified Opinion of Value
You receive a defensible, USPAP-compliant conclusion of value, walked through line by line. The report is documented to withstand scrutiny from a buyer, a court, a partner, or a lender.
Planning a transfer of practice interests?
Value first, gift second — we'll coordinate directly with your estate counsel and CPA.
Trusted by physicians across California
Real Google reviews from physicians and practice owners we have served. Read them on Google
“As a physician with partnership transaction of medical practice, he was an exceptional to guide me and advise me. He showed not only professionalism but also his eagerness to help and guide me through. Highly recommend him for any business valuation and transaction.”
Dr. Kyong Kim
Partnership transaction
“Fantastic valuation/appraisal specialist. I reached out to Alexey to help me evaluate a medical practice buy-in on short notice. He was able to work me into his schedule and accommodate my timeline despite how busy he was and provided crucial insight into helping me decide my next steps.”
Dr. Xuan Cao
Medical practice buy-in
“They get 5 stars across the board. Alexey was extremely thorough and detailed oriented. He did a deep dive into my practice’s financials, coding and practice history. He was easily approachable and prompt in answering questions and in completing the Appraisal. I am confident in the results and I would highly recommend him to any physician/practice for an appraisal.”
Dr. Robert Sacks
Ophthalmology practice
“I called Nechay as I was navigating the potential of selling my practice, and I had a lot of questions about my various offers for sale. Nechay was so responsive, methodical, and educational. He really allowed me to understand the landscape of selling my practice. He is an effective communicator, very patient on the phone and obviously extremely knowledgeable. I will be hiring him to help complete my transactions!”
Dr. Garima Lal
Evaluating sale offers
“I hired Nechay Appraisals to value my ophthalmology practice last year and couldn’t have been more impressed. From start to finish, Alexey was fantastic to work with. The end result was a highly professional and polished valuation report that provided valuable insights on the current state of my business.”
Dr. David Salvay
Ophthalmology practice valuation
“Alexey has been an excellent asset in evaluating our practice. His experience and practice suggestions have helped us tremendously. His working knowledge of medical practice evaluation and application of these skills is second to none. He is always readily available at a moment’s notice.”
Dr. Elio Vento
Practice evaluation
“Very attentive. Quick to respond. Knowledgeable.”
Dr. Betty Daniels
“Very professional, responsive and creates an excellent report and is accessible. Thank you!”
Dr. Daniel Laroche
“Alexey is very professional and a pleasure to work with. I was under time constraints and he completed his review on time despite those additional pressures.”
Dr. Charles Jackson
“Nechay listened carefully and provided objective feedback tailored to my specific situation. His honest communication and expertise made a complex process much easier. I highly recommend him.”
Dr. Maria Soledad Romero
“Highly recommend! From start to finish, he demonstrated expertise, professionalism, and genuine care. Not only did he deliver a thorough, well-researched valuation report, but he also took the time to explain key findings, offer strategic advice, and answered all our questions — even talked to our accountant and bookkeeper to dig deep into our situation.”
Dr. Alicia Sanchez
Medical practice valuation
“We hired Nechay Appraisals to value our ophthalmology practice the year before last and couldn’t have been more impressed. From start to finish, Alexey was fantastic to work with. He was very organized and very patient with us as we gathered what he needed. Every week he would check in to make sure everything was on track. We are getting ready to utilize his services again and are looking forward to working with him.”
Jenna Keller
Ophthalmology practice valuation
“I greatly appreciate the help from Alexey. The process was easy and the information was invaluable. The data provided was comprehensive and gave me perspective of my company that I was not aware of. I highly recommend Alexey and his company.”
Dr. Linh Ngo
Medical practice valuation
Frequently asked questions
It must be performed by an appraiser with recognized credentials and relevant experience, follow accepted methodology, and meet the regulatory content requirements. A CVA-prepared, USPAP-compliant Detailed Report is built to satisfy those tests.
A gift adequately disclosed on a filed return starts the three-year statute of limitations. Without it, the IRS can revalue the gift indefinitely — at the worst possible time, usually your estate's. The appraisal is what makes disclosure adequate.
California's corporate practice of medicine restricts ownership of professional medical corporations to licensed professionals, which constrains direct gifting. Your estate attorney structures the plan; our role is valuing the interests correctly within whatever structure counsel selects.
Discuss it with your tax counsel. If exposure exists, a retrospective appraisal as of the original date can quantify it and support corrective filing decisions — we prepare retrospective valuations regularly.
Yes. Valuation engagements are handled remotely from our California office. We work from your financials, interview you by phone or video, and send you the finished report. We have completed valuations in more than 35 states, and an on-site visit can be arranged when an engagement calls for it. Many physicians have no local appraiser who focuses on medical practices, so working with a specialist remotely often serves you better than hiring a generalist nearby.
File With a Number Built for Examination
Qualified appraisals, adequate-disclosure ready.
All inquiries are kept strictly confidential.