Valuation in the courts – Do discounts apply to real estate holding corporations?
Abstract: Discounts for lack of marketability (DLOM) aren’t unusual when a business or real estate is valued. But what about when a business that holds real estate is valued? Can DLOMs be applied to both the real estate and the corporation? Yes, according to one New York court — and that discount should account for built-in gains. This article summarizes the case.