William N. Kellahan, Jr. and Alice H. Kellahan - Page 12




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          components:  3.5 acres of land under water; a 1.25-acre strip of            
          land between the water’s edge at its normal levels and the high             
          water mark; and 12 piers built from adjacent lots out into the              
          water.  The 1.25-acre strip of land was usually above water but             
          was nonetheless part of the Canal parcel because the Canal                  
          extended to the high water mark.  Petitioners’ expert testified             
          that the State maintained and operated a dam that, among other              
          things, controlled the water level of Lake Marion and, in                   
          general, kept the water level below the high water mark.                    
               With respect to the 3.5 acres of land under water,                     
          petitioners’ expert’s method of valuation was similar to                    
          respondent’s:  He too sought comparable properties and settled on           
          ponds.  He examined sales of farms with ponds of 3 acres or more.           
          The first of these sales took place in March 1995, more than 4              
          years after the charitable contribution in the instant case.                
          Petitioners’ expert relied on buyers’ estimates of the per-acre             
          value of the ponds, and from this he estimated the value of the             
          land under water in the Canal to be $2,750 per acre.  He thus               
          valued the land under water at $9,625 (3.5 acres x $2,750).                 
               With respect to the piers, petitioners’ expert estimated               
          that there were 12 piers extending out into the Canal.  He valued           
          the piers at their estimated cost of $650 each, a figure he                 
          obtained from tax assessor records.  He included a total value              
          for the piers in the amount of $7,800 (12 piers x $650).                    





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