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$15,105.74 per share for gift tax purposes. The original Buy-Sell
Agreement was entered into in May 1975 and set the price for CamVic
stock at $11,333.30 per share. Neither petitioners nor their expert
gave any explanation for the approximately $4,000 (or greater than
25 percent) decline in the value of CamVic stock between 1974 and
1975. Moreover, following our review of the record, we have also
been unable to find any reason--outside of estate tax planning--to
justify such a decline in value.
We conclude that petitioners have not met their burden of
proving that the price per share set forth in the Buy-Sell Agreement
or the Revised Agreement reflected adequate and full consideration
for decedent's interest in CamVic stock.33 Estate of Gloeckner v.
Commissioner, T.C. Memo. 1996-148; Estate of Lauder v. Commissioner,
T.C. Memo. 1992-736. Thus, we hold that the fixed price of
$11,333.30 price per share set forth in both agreements is not
binding for estate tax purposes. As a result of our decision,
further proceedings will be necessary to determine the actual fair
market value of CamVic stock at the time of decedent's death on
September 10, 1990.
Appropriate orders will
be issued.
33Even petitioners' expert determined that the value of
CamVic's stock exceeded $11,333.30 per share as of April 1981.
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