- 21 -
does not enable us to determine the contributions of the spouses
as contemplated under section 2040(a). In light of respondent's
concession that the valuation of the joint tenancy in decedent's
gross estate is to be one-half, we shall assume that Yang, the
surviving spouse, traced one-half of the contributions for the
Young Property.
Both parties have agreed on the value of each entire parcel
included in the Young Property: (1) Bixby Knolls Hotel $508,500;
(2) Condo - Monterey Park $193,000; (3) Oak Tree Inn $2,750,000;
(4) Condo - El Monte $160,000; and (5) House - Hacienda Heights
$555,000. The dispute between the parties that we must resolve
is whether, and to what extent, a fractional interest discount or
a lack of marketability discount, which has been allowed in
regard to tenancy in common and community property, should be
applied to decedent's property held in joint tenancy with right
of survivorship.
Petitioner argues that section 2040 is an includability
section, determining the interest in the gross estate, not a
valuation section. Petitioner notes that section 2040, like
section 2033, contains the language "to the extent of the
interest therein". After determining the inclusion of property
under section 2033 or 2040, petitioner argues that sections 2031,
2032, and 2032A determine the value. Therefore, with the same
goal in sections 2033 and 2040, petitioner argues that the
Page: Previous 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 NextLast modified: May 25, 2011