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defined as "'the price at which the property would change hands
between a willing buyer and a willing seller, neither being under
any compulsion to buy or to sell and both having reasonable
knowledge of relevant facts.'" United States v. Cartwright, 411
U.S. 546, 551 (1973) (quoting section 20.2031-1(b), Estate Tax
Regs.). The determination of fair market value is a question of
fact. Estate of Newhouse v. Commissioner, 94 T.C. 193, 217 (1990);
Estate of Gilford v. Commissioner, 88 T.C. 38, 50 (1987). If the
relevant property is stock that is not listed on any exchange, and
cannot be valued with reference to bid and asked prices or
historical sales prices, the value of listed corporations engaged in
the same or a similar line of business should be considered. Sec.
2031(b).
The value of corporate stock may be limited for Federal estate
tax purposes as a result of an enforceable buy-sell agreement or
option contract which fixes the price at which the stock may be
offered for sale to the remaining shareholders. See, e.g., St.
Louis County Bank v. United States, 674 F.2d 1207, 1210 (8th Cir.
1982); May v. McGowan, 194 F.2d 396, 397 (2d Cir. 1952); Lomb v.
Sugden, 82 F.2d 166, 167 (2d Cir. 1936); Wilson v. Bowers, 57 F.2d
682, 684 (2d Cir. 1932); Estate of Gloeckner v. Commissioner, T.C.
Memo. 1996-148; Estate of Lauder v. Commissioner, T.C. Memo. 1992-
736; Rudolph v. United States, 71 AFTR 2d 93-2169, 93-1 USTC par.
60,130 (S.D. Ind. 1993).
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