--- title: AN ATTORNEY'S GUIDE TO TRANSFER PRICING & VALUATION ISSUES description: "Many companies carry \"goodwill\" on their balance sheet as an asset. As a result, like all assets, goodwill must be valued correctly on the company's" image: https://info.msgcpa.com/hs-fs/file-16258249-jpg/images/transfer_pricing-resized-600.jpg --- CALL YOUR LOCAL OFFICE** - How Can We Help? - [New York(646) 661-3800](tel:6466613800) - [New York(516) 829-4936](tel:5168294936) - [White Plains(914) 294-4300](tel:9142944300) - [Stamford(203) 357-1500](tel:2033571500) - [Roseland(973) 226-4500](tel:9732264500) [![MSG, New York City Accounting Firm](https://info.msgcpa.com/hubfs/msgcpa_june2016/images/logo.png)](http://www.msgcpa.com/) ![msgcpa_blog.jpg](https://info.msgcpa.com/hs-fs/hubfs/msgcpa_june2016/images/msgcpa_blog.jpg?width=1920&name=msgcpa_blog.jpg "msgcpa_blog.jpg") # Default HubSpot Blog We have distilled decades of experience at the intersection of law, business and finance into a suite of articles to help our clients make sense of business valuation, forensic accounting, and litigation support. Please visit our site regularly for our latest content. ## AN ATTORNEY'S GUIDE TO TRANSFER PRICING & VALUATION ISSUES Posted in [transfer pricing](https://info.msgcpa.com/blog/topic/transfer-pricing), on December 2011, by: Mark Gottlieb ![](https://info.msgcpa.com/hs-fs/file-16258249-jpg/images/transfer_pricing-resized-600.jpg) ![Transfer Pricing resized 600](https://info.msgcpa.com/hs-fs/file-16258249-jpg/images/transfer_pricing-resized-600.jpg)When one person or entity sells something to another person or entity, it is usually assumed that the seller tried to get a fair price for the item sold. Typically, that price is set by the laws of supply and demand in a market economy. However, when the people involved in the transaction are *related* in some way, the game changes. Picture, for example, a parent selling a house or a car to a child. The parent may be far more generous than he would be of selling the house to a stranger. For this reason, it is well recognized that transactions between related parties aren't really reflective of something’s actual worth. This is why, in home appraisals for example, only arms length transactions (transactions involving unrelated strangers) are considered. In the business world, the same principle applies: when a transaction involves related parties, it cannot be assumed that the price for which something is bought or sold is reflective of the actual worth of the goods/services bought or sold. Unfortunately, when a price is not reflective of value, it creates a multitude of problems in terms of taxing the transaction. Transfer pricing is used to solve those problems and attorneys who represent business clients *must* advise those clients of transfer pricing and how it applies in transactions between different branches of multi-entity companies. **[Mark S. Gottlieb](http://www.msgcpa.com/)** recently wrote a white paper entitled, An Attorney's Guide to Transfer Pricing & Related Valuation Issues. This is a must read for all corporate and business law practitioners. What attorneys will learn from this whitepaper: **1. What is transfer pricing?** **2. When is transfer pricing necessary?** **3. What guidelines are required for transfer pricing?** **4. What methods are used to assess transfer pricing?** **5. How can tax penalties be avoided?**                                            To obtain a **free** copy of this whitepaper click [here](https://info.msgcpa.com/transfer-pricing-and-valuation/)!** **    ### Categories - [financial analysis (1)](https://info.msgcpa.com/blog/topic/financial-analysis) - [goodwill impairment testing (1)](https://info.msgcpa.com/blog/topic/goodwill-impairment-testing) - [transfer pricing (1)](https://info.msgcpa.com/blog/topic/transfer-pricing) [** Subscribe](http://www.msgcpa.com/feed/) ### Archives - [December 2011 (2)](https://info.msgcpa.com/blog/archive/2011/12) ### Contact Us Now ** 1270 Avenue of the Americas New York, New York 10020 [**(646) 661-3800](tel:6466613800) [**Contact Us Now](http://www.msgcpa.com/contact/) © Copyright 2024. All rights reserved. [Sitemap](http://www.msgcpa.com/sitemap/) | [Legal](http://www.msgcpa.com/legal/) | Mark S. Gottlieb, CPA, PC. | [A PaperStreet Web Design](http://www.paperstreet.com) | [Privacy Policy](https://www.iubenda.com/privacy-policy/7998695)       [**](https://info.msgcpa.com/blog/bid/111587/AN-ATTORNEY-S-GUIDE-TO-TRANSFER-PRICING-VALUATION-ISSUES#top) - [**](https://www.facebook.com/pages/Mark-S-Gottlieb-CPA-PC-MSG-CPA/204605909583557) - [**](http://twitter.com/msgcpa) - [**](http://www.linkedin.com/company/mark-s-gottlieb-cpa-pc) - [**](https://plus.google.com/u/0/b/104224829981145506106/104224829981145506106/about) - [**](http://www.msgcpa.com/contact/)