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consideration of all of the evidence in the record. Morris v.
Commissioner, 761 F.2d 1195, 1200 (6th Cir. 1985), affg. T.C.
Memo. 1982-508; Estate of Newhouse v. Commissioner, 94 T.C. 193,
217 (1990).
In 1958, respondent determined that petitioner was exempt
from Federal income tax as an organization described in section
501(c)(3). The principal question before us is whether the
circumstances of the 1983 sale by petitioner to AMH were such as
to confer a prohibited benefit, i.e., inurement, on AMH and
therefore on its shareholders, who were directors of both
petitioner and AMH, with the result that petitioner should lose
its exemption. At the outset, we think it important to keep in
mind the context in which the question arises and the role of
fair market value in determining whether such inurement occurred.
This is not an estate or gift tax case where it is necessary
to determine a precise amount representing the fair market value
of the property transferred in order to determine the amount, if
any, subject to tax. Rather, the question to be resolved is
whether the sale was the product of an arm's-length transaction
which produced a sale price that is sufficiently close to the
fair market value of the property at the time of the sale, so
that one can fairly conclude that there was no prohibited
inurement. Or to put it another way, recognizing that what is
fair market value presents an inherently imprecise issue (which
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