- 11 -
Special use valuation is not automatic. Estate of Gardner
v. Commissioner, 82 T.C. 989 (1984). Rather, the executor must
elect special use valuation on a Federal estate tax return, and
file the agreement referred to in section 2032A(d)(2). Sec.
2032A(a)(1)(B). A protective election may be made, as here, to
specially value qualified real property. Sec. 20.2032A-8(b),
Estate Tax Regs. (On brief, respondent has conceded that, for
purposes of this case, petitioner made a valid protective
election for special use valuation under section 2032A on the
original return.) In addition, although an election need not
include all real property included in an estate which is eligible
for special use valuation, sufficient property to satisfy the
threshold requirements of section 2032A(b)(1) must be specially
valued under the election. Sec. 20.2032A-8(a)(2), Estate Tax
Regs. (Respondent does not dispute that this last requirement
has been satisfied.)
Section 2032A(d)(1) directs the Secretary to prescribe
regulations to establish the manner in which the special use
valuation election is to be made. See Estate of Gunland v.
Commissioner, 88 T.C. 1453, 1455 (1987). To that end, section
20.2032A-8(a)(3), Estate Tax Regs., lists 14 items of information
that the executor must submit with the Federal estate tax return,
including the fair market value of the real property to be
specially valued under section 2032A and its value based on its
qualified use, as well as the method used to determine the
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