Valbridge
Specialty Practices

Fractional Interest Valuation

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 an 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. 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.

Valbridge Solutions

Samples of solutions for our clients include:

  • 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

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 70 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.

Team Members

John D. Penner
MAI
Orange County, CA
National Director
Phone: (714) 449-0852
David Brooks
MAI, CRE
Baltimore Washington Metro
Team Member
Phone: (443) 333-5525
Matt Lubawy
MAI, CVA
Las Vegas & Reno, NV
Team Member
Phone: (702) 242-9369
Geri Armalavage
MAI, CBA, CVA
Naples, FL
Team Member
Phone: (239) 514-4646
Gene Malone
San Francisco Bay Area, CA
Team Member
Phone: (925) 327-1660 x7305
Jeff Miller
MAI, AI-GRS, CCIM, ASA
Atlanta, GA
Team Member
Phone: (404) 354-2331
Frank Trupia
MAI
New York, NY
Team Member
Phone: (212) 286-1113 x7100
Joe Alerding
MAI
Indiana, IN
Team Member
Phone: (317) 687-2747
Ian E. Templeton
MAI
Dallas, TX
Team Member
Phone: (214) 446-1611