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II. Fair Market Value
Valuation is a question of fact, and the trier of fact must
weigh all relevant evidence to draw the appropriate inferences.
Commissioner v. Scottish Am. Inv. Co., 323 U.S. 119, 123-125
(1944); Helvering v. National Grocery Co., 304 U.S. 282, 294-295
(1938); Anderson v. Commissioner, 250 F.2d 242, 249 (5th Cir.
1957), affg. in part and remanding in part T.C. Memo. 1956-178;
Estate of Newhouse v. Commissioner, 94 T.C. 193, 217 (1990);
Skripak v. Commissioner, 84 T.C. 285, 320 (1985).
Fair market value is defined for Federal estate and gift tax
purposes as the price that a willing buyer would pay a willing
seller, both having reasonable knowledge of all the relevant
facts and neither being under compulsion to buy or to sell.
United States v. Cartwright, 411 U.S. 546, 551 (1973) (citing
sec. 20.2031-1(b), Estate Tax Regs.); see also Snyder v.
Commissioner, 93 T.C. 529, 539 (1989); Estate of Hall v.
Commissioner, 92 T.C. 312, 335 (1989). The willing buyer and the
willing seller are hypothetical persons, rather than specific
individuals or entities, and the individual characteristics of
these hypothetical persons are not necessarily the same as the
individual characteristics of the actual seller or the actual
buyer. Estate of Curry v. United States, 706 F.2d 1424, 1428-
1429, 1431 (7th Cir. 1983); Estate of Bright v. United States,
658 F.2d 999, 1005-1006 (5th Cir. 1981); Estate of Newhouse v.
Commissioner, supra at 218; see also Estate of Watts v.
Commissioner, 823 F.2d 483, 486 (11th Cir. 1987), affg. T.C.
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