- 2 -
the other real estate is valued by reference to a
market absorption discount.
Russell E. Bowers and Bernard L. McAra, for petitioner.
Trevor T. Wetherington, for respondent.
MEMORANDUM FINDINGS OF FACT AND OPINION
LARO, Judge: The Estate of Eldon L. Auker, Deceased,
Kimberlee J. Auker, Independent Personal Representative,
petitioned the Court to redetermine respondent's determination of
a $1,810,737 deficiency in Federal estate tax. Following
concessions by the parties, the only issue left to decide is
whether a discount for market absorption inheres in the
August 12, 1992, fair market value of certain assets included in
the Estate of Eldon L. Auker (the estate). The assets consist of
three apartment complexes (collectively, the apartment complexes)
and interests in five family-owned entities the assets of which
include real estate and interests in two other family-owned
entities that own real estate.
We hold that a 6.189-percent market absorption discount
inheres in the fair market value of each apartment complex, and
that the values of the decedent's interests in the entities are
not determined by reference to a market absorption discount.
Unless otherwise stated, section references are to the applicable
provisions of the Internal Revenue Code. Rule references are to
the Tax Court Rules of Practice and Procedure.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011