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 13

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            Commissioner, supra at 252; Silverman v. Commissioner, supra at                            
                  Real estate valuation is a question of fact resolved on the                          
            basis of the entire record. See Ahmanson Found. v. United States,                          
            674 F.2d 761, 769 (9th Cir. 1981); Estate of Fawcett v.                                    
            Commissioner, 64 T.C. 889, 898 (1975).  The trier of fact must                             
            weigh all relevant evidence to draw the appropriate inferences.                            
            See Commissioner v. Scottish Am. Inv. Co., 323 U.S. 119, 123-125                           
            (1944); Helvering v. National Grocery Co., supra at 294-295;                               
            Estate of Newhouse v. Commissioner, supra at 217.  The standard                            
            for valuation is fair market value, which is defined as the price                          
            that a willing buyer would pay a willing seller, both persons                              
            having reasonable knowledge of all relevant facts and neither                              
            person being under a compulsion to buy or to sell.  See sec.                               
            20.2031- 1(b), Estate Tax Regs.; see also United States v.                                 
            Cartwright, 411 U.S. 546, 551 (1973); Estate of Simplot v.                                 
            Commissioner, 112 T.C. 130, 151 (1999).  The standard is                                   
            objective, using a purely hypothetical willing buyer and seller                            
            who are presumed to be dedicated to achieving maximum economic                             
            advantage in any transaction involving the property, see Estate                            
            of Simplot, supra at 152, which must be achieved in the context                            
            of market and economic conditions at the valuation date, see                               
            Estate of Newhouse v. Commissioner, supra at 218.                                          

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