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Estate Tax Regs. In the absence of such sales, fair
market value is determined by considering, inter alia:
(a) The nature of the business and the history
of the enterprise from its inception;
(b) The economic outlook in general and
the condition and outlook of the
specific industry in particular;
(c) The book value of the stock and the
financial condition of the business;
(d) The earning capacity of the company;
(e) The dividend paying capacity [of the
company];
(f) Whether or not the enterprise has
goodwill or other intangible value;
(g) The size of the block of stock to be
valued; and
(h) The market price of stock of
corporations engaged in the same line
or similar line of business having
their stocks actively traded in a
free and open market, either on an
exchange or over-the-counter. [Rev.
Rul. 59-60, sec. 4.01, 1959-1 C.B. at
237, 238-239; see also sec. 20.2031-
2(f), Estate Tax Regs.]
These factors are not intended to be all-inclusive, and
cannot be applied with mathematical certainty. See Rev.
Rul. 59-60 sec. 3.01, 1959-1 C.B. at 238. Because
petitioners made a section 83(b) election with respect
to the subject stock, and because the restrictions on the
stock were not perpetual, the value of the SWI stock for
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