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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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