Nathan P. and Geraldine V. Morton - Page 23

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                  The determination of fair market value is a question                
             of fact to be resolved from a consideration of all rele-                 
             vant evidence in the record and appropriate inferences                   
             therefrom.  See Estate of Jung v. Commissioner, 101 T.C.                 
             412, 423-424 (1993); Estate of Andrews v. Commissioner,                  
             79 T.C. 938, 940 (1982); Duncan Indus. v. Commissioner,                  
             73 T.C. 266, 276 (1979); Kaplan v. Commissioner, 43 T.C.                 
             663, 665 (1965); Mandelbaum v. Commissioner, T.C. Memo.                  
             1995-255, affd. without published opinion 91 F.3d 124                    
             (3d Cir. 1996).  Petitioners bear the burden of proving                  
             that the fair market value determined by respondent is                   
             incorrect.  See Rule 142(a), Tax Court Rules of Practice                 
             and Procedure; Estate of Jung v. Commissioner, supra at                  
             424; Estate of Winkler v. Commissioner, T.C. Memo. 1989-                 
             231.  All Rule references hereinafter are to the Tax                     
             Court Rules of Practice and Procedure.                                   
                  Determining fair market value is often difficult                    
             where, as here, the subject property is the capital stock                
             of a closely held corporation for which no public market                 
             exists.  In these circumstances, an actual arm's-length                  
             sale of the stock in the normal course of business within                
             a reasonable time before or after the valuation date is                  
             the best evidence of fair market value.  See Estate of                   
             Andrews v. Commissioner, supra at 940; Estate of Campbell                
             v. Commissioner, T.C. Memo. 1991-615, sec. 20.2031-2(b),                 

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