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We will deny petitioner’s motion to exclude the disputed
evidence, and we turn to the valuation issue bearing this
evidence in mind.
2. Value of Property
For Federal estate tax purposes, property includable in a
decedent's gross estate is valued 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. For Federal gift tax purposes, property
is valued on the date of the gift. Sec. 2512(a); sec. 25.2512-1,
Gift Tax Regs. In both cases, value is a factual determination
for which the trier of fact must weigh all relevant evidence and
draw appropriate inferences and conclusions. Commissioner v.
Scottish Am. Inv. Co., 323 U.S. 119, 123-125 (1944); Helvering v.
National Grocery Co., 304 U.S. 282, 294 (1938); Skripak v.
Commissioner, 84 T.C. 285, 320 (1985); Zmuda v. Commissioner,
79 T.C. 714, 726 (1982), affd. 731 F.2d 1417 (9th Cir. 1984).
Fair market value is the price that a willing buyer would pay a
willing seller, both persons having reasonable knowledge of all
relevant facts and neither person being under a compulsion to buy
or to sell. Sec. 20.2031-1(b), Estate Tax Regs.; sec. 25.2512-1,
Gift Tax Regs.; see also United States v. Cartwright, 411 U.S.
546, 551 (1973); McDonald v. Commissioner, 764 F.2d 322, 329 (5th
Cir. 1985), affg. T.C. Memo. 1983-197; Snyder v. Commissioner, 93
T.C. 529, 539 (1989); Estate of Hall v. Commissioner, 92 T.C.
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