FCG Valuation Case E-Flash Ludwick v. Commissioner

Authored by Fawntel Romero, AM and Chris D. Treharne, ASA, MCBA, BVAL of Gibraltar Business Appraisals, Inc., a member firm of FCG Issue 12:6

CITATION:
Andrew K. Ludwick, Petitioner v. Commissioner of Internal Revenue, Respondent, and Worth Z. Ludwick, Petitioner v. Commissioner of Internal Revenue, Respondent
T.C. Memo 2010-104, Docket Nos. 3281-08, 3282-08 Filed May 10, 2010.

The Takeaway
In the absence of a legal obligation to the contrary, unanimity among TIC owners is required for decision making. Hence, even a large majority ownership interest cannot unilaterally implement actions on behalf of the owners. Conversely, a small, fractional interest can block decisions, which gives it authority that many other minority ownership interests do not have. In addition to addressing lack of marketability issues, analysts valuing TIC interests should consider the economic impact associated with an owners inability to control decision making.

Download Resource›

Email Have a question about something you read? Give us a call or shoot us an email.




Thank you for contacting us! Someone will be with you shortly.