- 17 -
1(b), Estate Tax Regs.; see also First Natl Bank of Kenosha v.
Unites States, 763 F.2d 891, 893-894 (7th Cir. 1985); Estate of
Newhouse v. Commissioner, supra; Estate of Gilford v.
Commissioner, 88 T.C. 38, 52 (1987).
The question of "Valuation of stock for tax purposes is a
matter of 'pure fact.'" Hamm v. Commissioner, 325 F.2d 934, 938
(8th Cir. 1963) (quoting Penn v. Commissioner, 219 F.2d 18, 20-21
(9th Cir. 1955)), affg. T.C. Memo. 1961-347; Estate of Newhouse
v. Commissioner, supra at 217; see also In re Nathan's Estate v.
Commissioner, 166 F.2d 422, 425 (9th Cir. 1948) (the question of
fair market value for tax purposes is ever one of fact and not of
formula), affg. a Memorandum Opinion of this Court dated July 17,
1946.
While listed market prices are the benchmarks in the case of
publicly traded stock, in determining the value of unlisted
stocks, actual sales made in reasonable amounts at arm's length,
in the normal course of business within a reasonable time before
or after the valuation date are the best criteria of market
value. See Estate of Fitts v. Commissioner, 237 F.2d 729, 731
(8th Cir. 1956), affg. T.C. Memo. 1955-269; Estate of Andrews v.
Commissioner, 79 T.C. 938, 940 (1982); Duncan Indus., Inc. v.
Commissioner, 73 T.C. 266, 276 (1979); Estate of Campbell v.
Commissioner, T.C. Memo. 1991-615; sec. 20.2031-2(b), Estate Tax
Regs.
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