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$43,936.50. Dividing this amount by the capitalization rate of
10.87 results in a special use value for the subject property of
$404,199.63. Petitioner contends that the report attached to the
amended return fully comports with the requirements of section
2032A(e)(7) and accompanying regulations, and that petitioner's
protective election has thereby been perfected. Petitioner
further maintains that the subject property was used for a
qualified use, and that decedent materially participated in its
operation. (No other requirements of section 2032A are in
issue.)
Respondent argues, on the other hand, that petitioner failed
to properly perfect its election with respect to the qualified
woodlands on the amended return. More specifically, respondent
argues that, in electing to value the subject property pursuant
to section 2032A(e)(7)(A), petitioner failed to identify
comparable properties and annual gross cash rent figures as
required. Respondent also argues that petitioner failed to
demonstrate that the subject property was in qualified use and
that decedent materially participated in its operation.
Section 20.2032A-4(b)(2), Estate Tax Regs., describes the
documentation required from the executor in order to value
property under section 2032A(e)(7)(A). The regulation states
that "The executor must identify to the Internal Revenue Service
actual comparable property for all specially valued property and
cash rentals from that property" for each of the 5 calendar years
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