Doris F. Rabenhorst and Alvin P. Rabenhorst, Sr. - Page 17

                                       - 17 -                                         
          probative value simply because related parties were involved.  It           
          cannot be said that every transaction between related parties is            
          “endowed with a conclusive presumption of suspicion”.  Messing v.           
          Commissioner, supra at 511.  Petitioners provided uncontradicted            
          testimony regarding the redemption, and we believe that such                
          testimony was credible.  Under the circumstances, we also believe           
          that the redemption retains probative value despite having                  
          occurred approximately 5 years before the 1988 stock transfer.              
               Having carefully studied the entire record in this case, and           
          based upon the testimony and the appraisal documents relied upon            
          by both parties, we find that petitioners have successfully                 
          established that respondent’s determination is erroneous.                   
          However, based upon our examination of the evidence contained in            
          the record, we decline to accept petitioners’ valuation without             
          first accounting for its shortcomings, as identified herein.                
          Accordingly, we hold that on December 12, 1988, the fair market             
          value of the 1988 stock transfer was $902,208, or $296 per share.           
          In reaching this result, we give due consideration to Chaffe’s              
          appraisal report and the 1984 redemption.  We also give due                 
          consideration to petitioners’ overall credibility.                          
               To reflect the foregoing,                                              
                                                  Decision will be entered            
                                            under Rule 155.                           








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

Last modified: May 25, 2011