Estate of Eileen K. Brocato - Page 14




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          F.2d 1174 (9th Cir. 1986); Estate of Williams v. Commissioner,              
          T.C. Memo. 1998-59; Mooneyham v. Commissioner, T.C. Memo. 1991-             
          178; Estate of Sels v. Commissioner, T.C. Memo. 1986-501.                   
          Fractional interest discounts may be necessary to compensate a              
          willing buyer for the lack of control, lack of marketability,               
          illiquidity, and potential partitioning expenses associated with            
          such interests.  See Estate of Pillsbury v. Commissioner, T.C.              
          Memo. 1992-425.                                                             
               Petitioner primarily relies on an appraisal report prepared            
          by Paul E. Talmage (Mr. Talmage) to establish the appropriate               
          blockage and fractional interest discounts.  Respondent relies on           
          an appraisal report prepared by Karen Simons (Ms. Simons).                  
               We have wide discretion in accepting expert testimony.  See            
          Helvering v. National Grocery Co., 304 U.S. 282, 294-295 (1938).            
          We examine the expert’s qualifications and compare his or her               
          testimony with all other credible evidence in the record.  We may           
          accept or reject an expert’s opinion in toto, or we may pick and            
          choose the portions of the opinion that we wish to adopt.  See              
          id.; Seagate Tech., Inc., & Consol. Subs. v. Commissioner, 102              
          T.C. 149, 186 (1994); Estate of Newhouse v. Commissioner, 94 T.C.           
          193, 218 (1990); Parker v. Commissioner, 86 T.C. 547, 562 (1986).           
               Mr. Talmage was recognized by the Court as an expert in real           
          estate appraisal, including blockage and fractional interest                
          discounts.  He is a member of the Appraisal Institute and has               






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