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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),
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