Minority interests in closely held real estate: lessons from Estate of Berg

Article Abstract:

The Tax Court, in Estate of Berg v Commissioner, in 1991 approved the Real Estate Investment Trust (REIT) Approach as the preferred method for calculating a real estate holding company's minority interest discounts. The REIT Approach, which uses discount data from publicly traded real estate entities, thus superseded the common sense and precedent that had previously been the officially sanctioned methods. In addition, the Court's decision to toughen the criteria for deciding who is an expert witness will strongly affect the real estate appraisal business.

Standards, Cases, Evidence, Expert, Expert evidence, Discount (Finance), Real estate investment trusts, Real estate appraisers

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Home office frolics

Article Abstract:

IRC section 280A(c)(5) was added to the code to liberalize the treatment of the home office deduction. The section specifically was aimed at the approach used by the US Supreme Court in Commissioner v. Soliman. However, since the effective date of the statute was prospective and the deduction is a low IRS guidance priority, taxpayers will have to await clear relief.

Public Finance Activities, Tax Deductions & Exemptions, Home offices

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Conservation easements benefit both the taxpayer and the environment

Article Abstract:

The authors discuss tax and valuation issues regarding conservation easements, a form of charitable contribution.

Charitable contributions, Charitable donations, Conservation easements

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