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Richard Zitelman of the Zitelman Group, Inc. Zitelman determined
that, as of the valuation date, the fair market value of
decedent's interest was $399,000. Petitioner included this
amount in the gross estate. Respondent determined the fair
market value of the decedent's interest as of the date of death
was $1,070,000. Subsequently, respondent conceded $262,000 of
that adjustment.
OPINION
We must decide whether petitioner properly valued decedent's
interest in the partnership for purposes of section 2031(a).
Petitioner must prove that respondent's determination of value
set forth in the notice of deficiency is incorrect. Rule 142(a);
Welch v. Helvering, 290 U.S. 111, 115 (1933); Estate of Gilford
v. Commissioner, 88 T.C. 38, 51 (1987).
The parties agree that decedent's interest should be valued
as a limited partnership interest notwithstanding the fact that
decedent held a 1-percent general partnership interest as of the
valuation date but do not agree upon the value of that interest
or upon the method by which decedent's interest should be valued.
Respondent's expert used the fractional discount method, whereas
petitioner's expert used the discounted cash-flow (DCF) method.
The parties primarily rely upon their experts' testimony and
reports to support their respective positions. Expert testimony
sometimes aids the Court in determining valuation. Other times,
it does not. See Laureys v. Commissioner, 92 T.C. 101, 129
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