Estate of Lynn M. Rodgers, deceased, First National Bank of Commerce, Executor - Page 14




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          terest in Marrero Land on the valuation date is its book value,             
          or $4,316,920, because amended article VI controls the value of             
          that interest for estate tax purposes.                                      
               Respondent modified the determination in the notice as to              
          the value of decedent's interest in Marrero Land on the valuation           
          date.  Respondent now contends that the fair market value of that           
          interest on that date is $7,700,000.                                        
               The value of decedent's gross estate is to be determined by            
          including the value at his death of all of his property, real or            
          personal, tangible or intangible, wherever situated.  See sec.              
          2031(a).2  The value of every item of property includible in                
          decedent's gross estate is its fair market value on the valuation           
          date.  See sec. 20.2031-1(b), Estate Tax Regs.  Section 20.2031-            
          1(b), Estate Tax Regs., defines the term "fair market value" as             
               the price at which the property would change hands                     
               between a willing buyer and a willing seller, neither                  
               being under any compulsion to buy or to sell and both                  
               having reasonable knowledge of relevant facts. * * *                   
               All relevant facts and elements of value as of the                     
               applicable valuation date shall be considered in every                 
               case. * * *                                                            
               The willing buyer and the willing seller to which section              
          20.2031-1(b), Estate Tax Regs., refers are hypothetical persons,            
          rather than specific individuals or entities, and the individual            


               2All section references are to the Internal Revenue Code in            
          effect on the valuation date.  All Rule references are to the Tax           
          Court Rules of Practice and Procedure.                                      




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Last modified: May 25, 2011