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EC North Dakota | So many different answers I have to wonder if it’s misinformation or different state laws.
Undivided interest had been 30-40% here, for IRS and appraisal purposes.
There is talk of the IRS not allowing some discounts in the future because they say the discount is merely to save taxes and not for legitimate business purposes.
Every situation is different, but someone above was suggesting using undivided interest is an attempt to screw someone. I say not in most cases.
I know of specific cases where the parents want their farming heirs to buy the land at a discount. Problem is we don’t know how much discount they expected, how much the appraiser chooses to go with and how much the IRS will allow when the time comes.
Too many unknowns that could end up contentious.
Edited by ndsu84 11/23/2018 18:34
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Undivided interest discount in real estate
