- 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
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