Anna Lee Locke - Page 16

                                       - 16 -                                         
          as shown on the decedent's estate tax return.  Respondent further           
          contends that, because petitioner was the executrix of the                  
          decedent's estate and signed the estate tax return that listed              
          the value of the total gross estate as $544,856, petitioner is              
          estopped from asserting a different estate value.                           
               Petitioner asserts that the transfer was for a reasonably              
          equivalent value because the items transferred to her from the              
          decedent consisted of liabilities in excess of assets.                      
          Petitioner testified that the values on the estate tax return               
          were incorrect, the items were subject to encumbrances, and the             
          values were artificially inflated so that she could receive a               
          higher step-up in basis.  The values submitted by petitioner on             
          the estate tax return are an admission by petitioner, and lower             
          values cannot be substituted without cogent proof that the                  
          reported values were erroneous.  Estate of Hall v. Commissioner,            
          92 T.C. 312, 337-338 (1989).  The Sacramento County tax                     
          assessment offered by petitioner is insufficient to establish the           
          fair market value of residential property because there is no               
          evidence of the manner in which the assessed value was                      
          determined.  Residential property assessments in California are             
          limited by law and not necessarily based on fair market value.              
          Cal. Const. Code art. 13A, sec. 2(a) (West 1996).  Likewise,                
          petitioner's unsupported testimony as to the value of other items           
          is speculative and insufficient.  Petitioner has failed to                  
          produce any evidence that would overcome the admission and                  




Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011