Fractional Interest Valuation

Our appraisals are the most comprehensive in the industry and will help your client sleep better at night knowing that the valuation will stand the scrutiny of the IRS.

The IRS allows for a discount to the value of an entity that owns real estate for interests of less than 100%. This is known as a fractional or partial interest. This would apply to limited partnership (LP), general partnership (GP), limited liability company (LLC), tenants in common (TIC), C and S corporate stock and undivided interests. The discount relates to the fact that the ownership interest has a “lack of control” over the operation and disposition of the real estate owned by the entity and a “lack of marketability” due to the difficulty in selling interest that is not publicly traded and is not easily financeable.

The valuation of these types of interests can be very complex and it is essential that a proper analysis be conducted if it is going to be accepted by the IRS for tax filing purposes. Valbridge Property Advisors continually updates its’ proprietary national database of fractional interest sale transactions and has the required expertise to tackle any tax situation as it relates to fractional interests.

Valbridge Solutions

Samples of solutions for our clients include:
  • 709 Gifting Tax Filing

  • 706 Estate Tax Filing

  • Buyout of Ownership Interest

  • Dispute Resolution

Our clients include:
  • Attorneys

  • Accountants

  • Trust Companies

  • Bank Trust Departments

  • Estate Executors or Heirs

  • Fiduciaries

  • Owners & Investors

Download The Fractional Interest white paper

The Valbridge Difference

IRS guidelines specify that appraisals for IRS purposes must consist of a “qualified appraisal” and be completed by a “qualified appraiser.” Valbridge Property Advisors is the largest commercial appraisal firm in the United States with over 80 offices nationwide. Each office is run by an MAI designated appraiser, which is the highest qualification in the industry. Valbridge Property Advisors specializes in appraisals for estate purposes and fractional interest valuation. Feel free to call or email any of our Specialty Team Members for assistance.

Comprehensive Valuation & Advisory Services

Valbridge specializes in appraising all types of property and land. We produce custom, consistent appraisal reports across the U.S. market.

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Specialty Practices

VIEW SPECIALTY PRACTICES

Team Members

John D. Penner, MAI

SENIOR MANAGING DIRECTOR

Request a Consultation

Valbridge welcomes single-property assignments as well as portfolio, multi-market and other bulk-property engagements.

Contact us to learn more
(888) 981-2029

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