Tax Mark L. Epstein Epstein & Friedman San Francisco, CA 415 / 896-2990 mlepstein@ msn.com		Are there gift tax advantages to forming a family limited partnership (FLP). How can the value of my assets decrease just because they are owned by a FLP? If a building is worth $1 million, would a knowledgeable buyer pay $250,000 for a 25% interest in the FLP that owns the building? Because of restrictions often included in the FLP agreement, a limited partner has no control and cannot sell his interest without offering it to the other partners first. This lack of control and lack of marketability decreases economic value. Use caution: an experienced attorney can guide you through the IRS hoops.

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