Until 1989, the Tax Court had rejected co-ownership or “fractionalization” discounts to real property values¹ although interests in real estate held as community property had been eligible for discount for non-marketability of the decedent’s fractional interest.² However, a 1989 case, Estate of Youle v. Commissioner,³ allowed a discount of 12 ½ percent for tenancy in common ownership. That case has been followed by about 20 cases allowing discounts of 10 to 60 percent.⁴ For real property other than timberland, a discount of 20 percent has been considered as relatively safe.⁵