Fair Market Value Case Study – Not Your Typical Valuation
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}Fractional Interest – “Minority Premium”?….Really?
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"post_summary": "<p>I recently read a short description of a presentation made by an IRS Engineer Team Manager at the National IRS Symposium sponsored by the American Society of Appraisers (ASA). The presentation addressed the application of discounts to fractional interests, and asserted that certain levels of discounts amounted to a “minority premium” for certain non-controlling interests. The speaker presented a financial model that suggested certain caps on the discounts applicable to fractional interests. Much of the logic behind the model and the theory are valid in a world where one considers specific buyers. However, when applying Fair Market Value (FMV), the theory quickly disintegrates into an attempt to ignore the proper standard of value.</p> \n",
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