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individuals or entities, and the individual characteristics of
these hypothetical persons are not necessarily the same as the
individual characteristics of the actual seller or the actual
buyer. Estate of Curry v. United States, 706 F.2d 1424, 1428-
1429, 1431 (7th Cir. 1983); Estate of Bright v. United States,
658 F.2d 999, 1005-1006 (5th Cir. 1981); Estate of Newhouse v.
Commissioner, supra at 218; see also Estate of Watts v.
Commissioner, 823 F.2d 483, 486 (11th Cir. 1987), affg. T.C.
Memo. 1985-595. The hypothetical willing buyer and willing
seller are presumed to be dedicated to achieving the maximum
economic advantage. Estate of Curry v. United States, supra at
1428; Estate of Newhouse v. Commissioner, supra at 218. This
advantage must be achieved in the context of market and economic
conditions at the valuation date. Estate of Newhouse v.
Commissioner, supra at 218.
For Federal gift tax purposes, the fair market value of the
subject property is determined as of the date of the gift;
ordinarily, no consideration is given to any unforeseeable future
event that may have affected the value of the subject property on
some later date. Sec. 2512(a); sec. 20.2031-1(b), Estate Tax
Regs.; see also First Natl. Bank v. United States, 763 F.2d 891,
893-894 (7th Cir. 1985); Estate of Newhouse v. Commissioner,
supra at 218; Estate of Gilford v. Commissioner, 88 T.C. 38, 52
(1987).
Special rules apply to the valuation of the stock of a
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