Estate of Lewis S. Thompson, III, Deceased, Synovus Trust Company, Successor Executor To Security Bank and Trust Company - Page 12

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          subject property's special use value.  Sec. 20.2032A-8(a)(3)(iv)            
          and (viii), Estate Tax Regs.  (On brief, petitioner asserts the             
          "Petitioner timely perfected its election for special use                   
          valuation" under section 2032A(d)(3), and respondent does not               
          challenge this assertion.)                                                  
               The method of valuation under section 2032A is an integral             
          part of the statutory scheme.  See Estate of Sequeira v.                    
          Commissioner, T.C. Memo. 1995-450.  Here, petitioner sought to              
          perfect its protective election with respect to the qualified               
          woodlands under the income capitalization method set forth in               
          section 2032A(e)(7)(A).  This method measures the present value             
          of the projected future cash-flows from the real property by                
          using cash rent figures for the 5 years preceding decedent's                
          death.  Sec. 2032A(e)(7)(A); Estate of Strickland v.                        
          Commissioner, 92 T.C. 16, 24 (1989).                                        
               Under the income capitalization method, a computation is               
          made of the "average annual gross cash rental" for comparable               
          land used for farming purposes and located in the locality of               
          such farm (comparable land).  (Gross cash rental is the amount of           
          cash received during the year for the use of actual tracts of               
          comparable farmland in the same locality, undiminished by any               
          expenses or liabilities associated with the farm operation.  Sec.           
          20.2032A-4(b)(1), Estate Tax Regs.; see Estate of Klosterman v.             
          Commissioner, 32 F.3d 402, 404 (9th Cir. 1994), affg. 99 T.C. 313           
          (1992).)                                                                    




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