Valuing Fractional Interests in Art for Estate Tax Purposes
4 Pages Posted: 31 May 2013
Date Written: May 30, 2013
It is difficult to value fractional interests in art because there is virtually no market in those interests. Nevertheless, the Tax Court in Estate of Elkins valued the decedent’s fractional interests in multiple artworks, which the decedent and his children highly cherished. First, the court addressed the restricted agreements under section 2703 and then the court determined the value of decedent’s interests in the art.
Keywords: valuation, estate tax, fractional interests, fractional interests in art, LLC, section 2703, restricted agreements, discounts, Elkins
JEL Classification: K11, K34, H2, H10, H20, H22, H23, H24, H29
Suggested Citation: Suggested Citation