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are taken into consideration. Petitioner and respondent have
further agreed that the fair value of the Class B Shares for
estate tax purposes was $15.56 per share if the securities law
restrictions applicable to decedent are disregarded for Federal
estate tax valuation purposes.
Petitioner argues that the Class B shares subject to
securities law restrictions comprise the "interest" in property
under section 2033 that was transferred by decedent at death,
that the value of such interest is all that is included in
decedent's gross estate, and that the value of the interest
transferred by decedent is determined by valuing only the
restricted share interest of decedent.
Petitioner also urges that assuming, for the sake of
argument, valuation under section 2031 is at issue, the proper
measure of value for the interest transferred is limited to that
which decedent could have realized during his lifetime because
the securities law restrictions were not self-imposed, and the
facts do not present an abuse situation.
Lastly, petitioner argues that an unrestricted valuation for
the Class B shares would be inconsistent with the underlying
policy of the unified estate and gift tax system.
Respondent argues that the securities law restrictions
lapsed at decedent's death and should not be considered in
valuing the Class B shares at the moment of death because the
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