Fractional interest real estate appraisals generally are necessary when a fractional undivided interest in real estate is donated to charity. A close cousin is when an entity interest (e.g., an LLC), in whole or part, is donated to charity but it only owns real estate. In both cases, there is usually a qualified real estate appraisal first, followed by the final undivided interest or entity interest appraisal.
The IRS requires the use of a qualified appraiser for charitable gifts of donated property with a fair market value of more than $5,000. So, make sure you engage an experienced valuation professional, who knows the requirements for a qualified appraisal. For more information, please call Bryan at 404.375.5496.