Undivided Interest

Undivided Interest means:
an ownership right to use and possession of a property that is shared among co-owners, with no one co-owner having exclusive rights to any portion of the property.

Example of Undivided Interest:

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Ten investors form a tenancy in common and purchase a 100-acre tract of land. Each cotenant obtains an undivided interest in the property. All decisions as to the use and disposition of the land are made collectively by all cotenants. No one cotenant may unilaterally mortgage, develop, or sell a portion of the tract. A partnership tax return is filed. Each co-owner also includes a share of the income, loss, gain, and so on, in his or her own personal income tax return.

State Income Tax