Fractional Interest Valuations

Get tax-efficient valuations that show the true value of real estate interests.

Fractional Interest Valuations Explained

When someone has a minority stake in real estate, valuations are not as cut and dry as they would be if they owned the entire property. Since their stake may be difficult to sell, and since they don’t have full control of the property, they’re eligible for valuation discounts. Unfortunately, these discounts often catch the eye of the IRS, so it’s important to have a valuation specialist that understands the nuances.

How Quist Can Help

At Quist, we work through the different ownership dynamics at play and help determine the appropriate discounts applicable to those that have fractional real estate interests. We defend all of our valuations to the IRS, so you can be confident that they will stand up to scrutiny.

Proven Success Defending Valuations
to the IRS

Expert Analysis & Guidance

Defensible Lack of Control Discounts

Defensible Lack of Marketability Discounts

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Schedule a call today to learn more about how Quist can help you with your fractional interest valuation needs.

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Fractional Interest Resources

Blog

2022 Colorado State of Owner Readiness™ Survey

Quist helped sponsor the 2022 Colorado State of Owner Readiness™ survey, in partnership with the State of Colorado, the Exit Planning Institute, and other strategic partners.This research had been conducted in over 11 markets across the country, but this was the first time a state-wide...

March 1, 2022

Blog

Popular Estate and Gift Tax Planning Techniques – Are They Doomed?

In response to instructions under the budget resolution passed by the U.S. House of Representatives, Ways and Means Committee Chairman Richard Neal offered an amendment on September 13 that includes several tax changes in the area of estates, gifts, and trusts. The two most relevant...

October 8, 2021

Blog

Best Practices: Discounts for Lack of Marketability (DLOM)

Discounts for lack of marketability (DLOMs) have frequently been the subject of controversy in valuations. The reason: applying a DLOM – an amount or percentage deducted from the value of an ownership interest to reflect the relative absence of marketability – can result in significant...

September 24, 2021

Blog

Personal and Estate Planning – Use a Legacy Expert!

This is the second of a two part series on Personal and Estate planning, emphasizing what’s important to consider right now. As you probably know, now is THE time to consider transferring assets out of the estate due to lower valuations. As you work with...

May 1, 2020

Blog

Managing Change in Personal and Estate Planning

This is the first of a two part series on Personal and Estate planning. With the COVID-19 uncertainty, now is the time to take a very close look at current estate and personal plans, as both a checkup measure and to also potentially take advantage...

April 17, 2020

Blog

Tax Reform and Value: What business owners need to know.

Is your business worth more – or less – in 2018? Now that the Tax Cut and Jobs Act is law, what now? Because these rules affect the value of your business, every business owner needs to be aware of these important changes. Overall, companies...

February 1, 2018

Blog

How to Defend Against IRS Valuation Audits

Tax season is quickly approaching, and fear of an audit may be on the minds of some of your clients. While most IRS audits are unlikely (1 in 100), clients filing valuations with estate tax returns are very likely. “This is the I.R.S.’s last whack...

August 22, 2017

Blog

Death and Taxes vs. Preserving Wealth – The Final Exit Planning Contest

Full disclosure: Wealth preservation planning can’t help any of us cheat death, but it can help business owners to avoid taxes and achieve financial security. Read on. The ideal Exit Plan (one that provides the business exit you desire) includes a strategy to help you...

April 14, 2016

Blog

Industry Update: IRS publishes an internal document that reveals the agency’s most current thinking on the valuation of S Corps

The IRS S corp Job Aid says in the introductory section: [A]bsent a compelling showing that unrelated parties dealing at arm’s-length would reduce the projected cash flows by a hypothetical entity level tax, no entity level tax should be applied in determining the cash flows...

September 3, 2015

Blog

Understanding Advantages of Alternative Valuation Methods for Holding Companies

When valuing interests in holding companies, appraisers typically incorporate the asset-based approach. The asset-based approach considers the value of the subject company’s assets and liabilities in order to arrive at the value of equity. The net asset value (“NAV”) method is one method under the...

September 3, 2015

Blog

Gift and Estate Tax: How are they related?

The Gift Tax, according to the definition on the IRS website, “…is a tax on the transfer of property by one individual to another while receiving nothing, or less than full value, in return.” The Estate Tax is defined by the same website as, “…a...

March 13, 2014

Fractional Interest Valuations