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The estate concedes that the adjusted value of the combined
interests in NSP and Keeton Corrections does not exceed 50
percent of the adjusted gross estate.
III. The Current Dispute Between the Parties
Since the estate concedes that it does not pass the 50-
percent test under section 2057(b)(1)(C), it is unnecessary for
us to decide whether NSP meets the requirement under section
2057(b)(1)(D) for purposes of the 50-percent test in section
2057(b)(1)(C). The estate’s concession obviates any further
analysis under the statute because if both corporations combined
do not satisfy the 50-percent test of section 2057(b)(1)(C), the
estate will not be entitled to the deduction.
The estate has raised two additional procedural arguments
that require resolution by this Court. First, the estate argues
that the parties have stipulated that the combined value of
Keeton Industries and NSP satisfies section 2057(b)(1)(C), and
that the stipulation is binding on the parties and this Court.
Rule 91(e); Stamos v. Commissioner, 87 T.C. 1451, 1454 (1986).
In the alternative, the estate argues that we must refuse to
consider respondent’s argument that both interests combined could
not meet the requirement under section 2057(b)(1)(C) because he
prejudiced the estate by not raising it until his opening brief.
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