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partnership matters for which a two-thirds vote was required and
then only if the minority partners voted as a block against
Mr. Silver.
Although, under New York State law, any general partner of
the FC Partnership arguably had the legal authority to dissolve
the partnership, see N.Y. Partnership Law sec. 62(1)(b) (McKinney
1988); see also Estate of Bischoff v. Commissioner, 69 T.C. 32,
49 (1977), we believe that such authority would have little
impact on Mr. Silver's effective control of the FC Partnership.
We note that neither expert considered this arguable authority in
determining a minority interest discount.
The various market studies presented in the experts' reports
indicate that purchasers of business interests whose principal
assets consist of real property typically apply a discount of
approximately 19 percent where they are purchasing minority
interests in the businesses and would have little voice in
management of the businesses. As indicated above, an owner of a
single unit in the FC Partnership effectively would have no voice
in management of the FC Partnership.
We conclude that in this case it is appropriate to apply a
minority interest discount of 19 percent to decedent's ownership
unit in the FC Partnership.
With regard to the discount for lack of marketability, it is
clear that a single ownership unit in the FC Partnership was not
readily marketable and that any hypothetical purchaser would
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