-28-
3. Conclusion--Discounts
Based on the arguments of the parties and the record, we
conclude that discounts for lack of marketability of 40 percent
for the Home stock and 45 percent for the Rock Hill stock are
appropriate. We further conclude that a 3.66-percent discount
for nonvoting stock is appropriate for the Rock Hill stock. See
Estate of Lauder v. Commissioner, T.C. Memo. 1994-527 (40%
discount for lack of liquidity or marketability); Martin v.
Commissioner, T.C. Memo. 1985-424 (70% discount for
marketability/minority considerations).
E. Conclusion
We conclude that the fair market value per share of the
stock of Home that the Helmlys gave to their children and
grandchildren was $227.41 per share in January and December 1992,
and that the fair market value of the stock of Rock Hill that the
Barneses gave to their children was $201.12 per share on December
22, 23, and 26, 1992, and $193.34 per share on December 30,
1992.16
To reflect the foregoing,
Decisions will be entered
under Rule 155.
16 The values of Home and Rock Hill stock reported on
petitioners' returns ($230 and $220/$221 respectively) are
admissions by petitioners and will not be overcome without cogent
evidence that they are wrong. Waring v. Commissioner, 412 F.2d
800, 801 (3d Cir. 1969), affg. per curiam T.C. Memo. 1968-126;
Estate of Hall v. Commissioner, 92 T.C. 312, 337-338 (1989).
Petitioners have met this burden.
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