Charles H. Browning, Jr., and Patricia L. Browning - Page 28

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          14(h)(3)(i), Income Tax Regs., available to use as a “meaningful            
          or valid” comparison to the sale of the easement.                           
               E.  Before and After Valuation                                         
                    1.  Introduction                                                  
               The market for sales of development rights to the county               
          under the Program was not an uninhibited market, but was a market           
          characterized by sellers intending to make gifts to the county by           
          way of bargain sales; therefore, petitioners are entitled to show           
          the fair market value of the easement by evidence of the fair               
          market value of the land before and after the conveyance of the             
          easement.  Sec. 1.170A-14(h)(3)(i), Income Tax Regs. (third                 
          substantive sentence).  We shall now consider the expert                    
          testimony presented by both parties with respect to those values.           
                    2.  After Value                                                   
               The parties' expert appraisers, Messrs. Sapperstein (for               
          petitioners) and Lipman (for respondent), agree that the highest            
          and best use of the land after the conveyance of the easement to            
          the county is as a farm.  Both experts value the land subject to            
          the easement at $157,000.  Therefore, we find that the after                
          value of the land subject to the easement on the conveyance date            
          was $157,000.                                                               
                    3.  Before Value                                                  
               Messrs. Sapperstein and Lipman also agree that the highest             
          and best use of the land before the conveyance of the easement to           





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