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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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