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decedent did not have control over the asset. However,
respondent emphasizes that the property was in a liquidating
trust and not held for investment or as an operating asset in a
business setting, and, accordingly, the typical reasons for
applying a control discount do not exist in this case.
Respondent also emphasizes that the trust document prohibited any
business operation and its sole purpose was to liquidate the
trust assets. See Estate of McMullen v. Commissioner, T.C. Memo.
1988-500.
Petitioner relies heavily on Propstra v. United States,
supra, in which a husband and wife owned several parcels of
realty as community property. In that case the Government argued
that the taxpayer was required to show that the deceased spouse’s
community property interest would likely be sold apart from the
other undivided interest. The Court of Appeals for the Ninth
Circuit held that “unity of ownership” principles did not apply
to property valuations for estate tax purposes. Propstra v.
United States, supra at 1251.
Respondent argues that this case is factually outside the
Court of Appeals’ holding in Propstra because decedent had given
her interest and all other beneficiaries had given theirs to the
liquidating trustee for the express purpose of selling the
property. We agree. The beneficiaries, by relinquishing their
interests in the property and giving the trustee control and
authority to sell, including the authority to decide the selling
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