- 5 - Discussion We must determine whether a marketability discount applies to the stipulated value of the Decedent’s CGT shares, and, if so, the amount of this discount. Respondent determined no marketability discount for the shares and adheres to that position. The Fidiciary included no marketability discount in the value of the CGT shares reported on the Form 706, but he now argues for a 25-percent discount. The Fidiciary must prove the applicability and amount of a marketability discount. Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933); Estate of Gilford v. Commissioner, 88 T.C. 38, 50-51 (1987); see also Mandelbaum v. Commissioner, T.C. Memo. 1995-255. Property includable in a decedent's gross estate is included at its fair market value on either: (1) The date of the decedent's death or (2) the alternate valuation date as provided under section 2032. Secs. 2031(a) and 2032(a); sec. 20.2031-1(b), Estate Tax Regs. Fair market value is a question of fact. Commissioner v. Scottish Am. Inv. Co., 323 U.S. 119, 123-125 (1944); Helvering v. National Grocery Co., 304 U.S. 282, 294 (1938). Fair market value represents the price that a willing buyer would pay a willing seller, both persons having reasonable knowledge of all relevant facts and neither person under a compulsion to buy or to sell. Sec. 20.2031-1(b),Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011