If you own a property with less than 100% interest, you may qualify for certain discounts. Partial ownership applies in a variety of circumstances, such as when you own part of a business facility, like a restaurant or manufacturing center, or when you jointly own residential real estate, like a multifamily apartment complex, with a fellow rental landlord.
Partial or fractional interest discounts may apply to limited partnership, general partnership, limited liability company, tenants-in-common, C and S corporate stock, and undivided interests.
Property owners may qualify for this discount if their ownership interest demonstrates a lack of control over the operation or disposition of owned real estate. In other cases, property owners may qualify for a partial interest discount if they display a lack of marketability because of the difficulty in selling their interest (i.e., their interest is not publicly traded or easily financeable).
Regardless, MHS Appraisal is well-equipped to help you determine if you qualify for partial interest discounts. We can also thoroughly and comprehensively value or appraise your ownership interests, no matter what percentage of interest you have for a particular property.
It’s absolutely essential that you hire experts to conduct a proper analysis if you wish for your partial interest claim to be accepted by the IRS come tax season. We continually update our national database of fractional interest sales and other transactions, and we have the expertise you need to get the discount you deserve or tackle any other tax situation.
However, it’s also important to get a partial interest valuation from trusted advisors like MHS Appraisal if you wish to sell your partial interest. Say that you want to stop owning a particular building or business interest. Only with a thorough and accurate evaluation will you be able to ask for the appropriate price for your exit.
Contact MHS Appraisal today to learn how our partial interest valuations may be right for you.
MHS Appraisal is a valuation services company with a core competency in real estate market analysis in two divisions: commercial & residential appraisals and consulting & tax appeals. While many individuals think of real estate appraisal only in the context of financing, there are many situations that call for the professional opinion of a licensed real estate appraiser. Our mission is to serve as expert real estate problem solvers for our clients. Contact us today to get started working with one of the most trusted firms in Florida.