Estate of Bonnie I. Barge, Deceased, C. Richard Barge, Executor - Page 6

                                        - 6 -                                         
                                       OPINION                                        
          I.  Introduction                                                            
               This case involves the value of certain gifts made in 1987             
          (the 1987 gifts) by Bonnie I. Barge (decedent) in trust for the             
          benefit of her 10 grandchildren.  The 1987 gifts were of portions           
          of a 25-percent undivided interest in certain timberland (the               
          timberland).  The parties agree that the question for decision by           
          the Court is the fair market value of the 25-percent undivided              
          interest in the timberland (the undivided interest) as of                   
          February 6, 1987.  Petitioner argues that the fair market value             
          of the undivided interest in February 1987 was between $4,200,000           
          and $4,888,600 and on February 6, 1987, it was $4,750,000.                  
          Respondent argues that the fair market value of the undivided               
          interest on February 6, 1987, was at least $8,413,050.  The                 
          parties have stipulated that, as of the date of the 1987 gifts,             
          the fair market value of the timberland was $40 million.                    
               The standard for determining fair market value for purposes            
          of the gift tax is the price at which the property would change             
          hands between a willing buyer and seller, neither being under any           
          compulsion to buy or sell, and both having knowledge of relevant            
          facts.  Sec. 25.2512-1, Gift Tax Regs.  Valuation is an issue of            
          fact, and petitioner bears the burden of proof.  Rule 142(a).  We           
          have found that the fair market value of the undivided interest             
          was $7,404,649 on February 6, 1987.  We will explain our reasons            
          for making that finding.                                                    




Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  Next

Last modified: May 25, 2011