[WSBAPT] Valuation of Real Estate Partnership Interest in New York City

[Lovie Bernardi]

Thanks for your thoughts, Diane.

Lovie

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Diane J. Kiepe
Sent: Wednesday, October 13, 2021 2:12 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Valuation of Real Estate Partnership Interest in New York City

So one thing that comes to  mind is that the information may be important if anyone other than a charity is inheriting the PS interest for basis reporting purposes.  There are also some special tax elections for depreciation if one inherits a partnership with depreciable assets so for reasons other than estate tax a best try is important.

Second thing that comes to mind is to confirm you read the Partnership Agreement to determine if that would be of any use (sometimes there are directions on value when one dies and the partnership may be responsible to do something more then what they are doing for you).

Third thing that comes to mind, and it may not be attractive or quite frankly right, but I have had a WA DOR Rep say they would take a "Realtors.com" print out.  You could use that take a discount for PS interest likely being restricted (lack of transferability) and lack of control (if under 51%).  Thereafter times the PS by the "value" - disclose your approach to WA DOR with print out and hope for the best.

Diane J. Kiepe

Diane J. Kiepe
Douglas Eden
717 W. Sprague Ave.
Suite 1500
Spokane, WA  99201
djkiepe at depdslaw.com<mailto:djkiepe at depdslaw.com>
509-455-5300

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Lovie Bernardi
Sent: Wednesday, October 13, 2021 10:49 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [WSBAPT] Valuation of Real Estate Partnership Interest in New York City

Dear listmates,

I have a probate that will require a Washington estate tax return. (There will be no tax due because after gifting to individuals up to the exemption amount, the remainder will go to charities.) One asset is a small percentage of a real estate partnership that owns a hotel in Manhattan. The management of the partnership has done no recent appraisals and is unhelpful, other than suggesting we look up the assessed value with the New York taxing authority. The Department of Revenue says we must get an appraisal of the hotel, that assessed values for real estate are not accurate. Has anyone run into this situation before? Any suggestions for other ways to get a value for the partnership interest besides an appraisal of the hotel, one that DOR will accept? Failing that, I would appreciate referrals for commercial property appraisers in New York City. Thanks!

Lovie L. Bernardi
Flaherty & Bernardi, PLLC
3600 15th Avenue West #205
Seattle, WA  98119
(206) 682-2616

lovie at fb-lawfirm.com<mailto:joni at sbfirm.com>
http://fb-lawfirm.com<http://sbfirm.com/>

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