Jewell E. Gray, Donor, Deceased and Estate of Jewell E. Gray, Deceased, Jewell Mae Detjen, Personal Representative, et al. - Page 21

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               The fair market value of property on either the date of a              
          decedent's death or on the alternate valuation date is included             
          in a decedent's gross estate.  Secs. 2031(a), 2032(a); sec.                 
          20.2031-1(b), Estate Tax Regs.  Petitioner did not elect to value           
          the estate on the alternate valuation date.  Thus, we must decide           
          the fair market value of decedent's Beth W. Corp. stock on the              
          date of death.                                                              
               The fair market value of stock, including whether a discount           
          applies, is a question of fact.  Commissioner v. Scottish Am.               
          Inv. Co., 323 U.S. 119, 123-125 (1944); Helvering v. National               
          Grocery Co., 304 U.S. 282, 294 (1938); Estate of Newhouse v.                
          Commissioner, 94 T.C. 193, 217-218, 245 (1990).                             
               It is speculative if, when, and for what price the trusts              
          will sell the 55.91 acres and pay Beth W. Corp.  Payment on the             
          note was due in 1990 but had not been made as of the time of                
          trial.  We infer that payment on the note depended on sale of the           
          55.91 acres by the trusts.  Beth W. Corp. had a right of                    
          foreclosure against the 55.91 acres.  If it exercised that right            
          it would not pay tax on capital gain for sale of the land unless            
          it found another buyer.  Sec. 1038.  The trusts had not sold the            
          land as of the time of trial despite a price reduction.                     
          Petitioner has not shown that it is likely that Beth W. Corp.               
          will pay tax on the built-in capital gain.9                                 

               9See Estate of Robinson v. Commissioner, 69 T.C. 222, 226              

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