Estate of Charles a. Boratello, Deceased, C. Norman Borgatello and Josephine E. Donnelly, Co-Executors, and C. Norman Borgatello, Successor Trustee to the Charles A. Borgatello Living Trust - Page 5




                                                - 5 -                                                  
            reports ostensibly adjusted Mr. Holden's conclusions regarding                             
            the shopping center values in the Holden I reports for changes in                          
            the real estate market during the 6 months between the date of                             
            Mr. Borgatello's death and the alternate valuation date.  On the                           
            basis of the Holden II reports, the estate decided to elect the                            
            alternate valuation date.                                                                  
                  During the audit of the instant case, the estate provided                            
            respondent with the Holden I and II reports.  Later, during                                
            discussions with respondent's Appeals Office, the estate provided                          
            the Appeals officer with two reports by Carlos A. Cardenas                                 
            (Cardenas reports) valuing MVN and MVS on the alternate valuation                          
            date.  The Cardenas reports were not used in the preparation of                            
            the estate's tax return and were not provided to the Internal                              
            Revenue Service during the audit of the estate.  At trial, the                             
            estate did not use the Holden I or II reports or the Cardenas                              
            reports.  Instead, the estate used two new appraisals by Mr.                               
            Holden (Holden III reports), which valued MVN and MVS on the                               
            alternate valuation date.                                                                  
                  Respondent's valuation of MVN and MVS is based upon two                              
            appraisal reports (in a single bound volume) prepared by David                             
            Marx.  Mr. Marx prepared a Limited Summary report in which he                              
            reviewed the Holden I, II, and Cardenas reports and adopted some                           
            background data and conclusions from those reports.  In                                    





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011