- 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
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