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the bronze from petitioner's grandfather at the latter's death in
1972, and the father's basis would be the fair market value of
the bronze at the grandfather's date of death. See sec. 1014(a).
There is no suggestion that the fair market value on the date of
the gift was less than the fair market value on the date of the
father's death. The issue turns, therefore, on the fair market
value of the bronze in 1972. See United States v. Lattimore, 353
F.2d 379 (9th Cir. 1965).
We are faced with a difficult task. On one hand, we could
simply hold that petitioner has not established the value of the
(...continued)
shall, if possible, obtain such facts from such donor * * *
or any other person cognizant thereof. If the Secretary
finds it impossible to obtain such facts, the basis in the
hands of such donor * * * shall be the fair market value of
such property as found by the Secretary as of the date or
approximate date at which, according to the best information
that the Secretary is able to obtain, such property was
acquired by such donor * * *.
The notice of deficiency states that petitioner had "not
established the fair market value or that * * * [his] basis in
this property is more than $0.00". It is unclear whether the
failure was due to the uncertainty as to the appropriate
valuation date or to the lack of information concerning the fair
market value as of that date. Neither party has argued that
these provisions apply. We note that the Court of Appeals for
the Sixth Circuit held: "In the event that insufficient
probative evidence upon this issue [of the taxpayer's basis] is
adduced, then neither gain not [sic] loss can be allowed". James
E. Caldwell & Co. v. Commissioner, 234 F.2d 660, 661 (6th Cir.
1956), revg. and remanding per curiam 24 T.C. 597 (1955). Here,
the valuation date has been established. The uncertainty
concerns the value as of the valuation date, and we believe that
there is sufficient evidence to allow us to make a finding as to
that value.
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