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Property includable in a decedent’s gross estate is to be
returned at its fair market value generally as of the date of
decedent’s death. See sec. 2031(a); sec. 20.2031-1(b), Estate
Tax Regs. Fair market value is “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.” United States v.
Cartwright, 411 U.S. 546, 551 (1973); Estate of Hall v.
Commissioner, 92 T.C. 312 (1989); Estate of Heckscher v.
Commissioner, 63 T.C. 485, 490 (1975); sec. 20.2031-1(b), Estate
Tax Regs.; sec. 25.2501-1, Gift Tax Regs. The willing seller and
buyer are hypothetical rather than specific individuals or
entities. See Estate of Bright v. United States, 658 F.2d 999,
1005-1006 (5th Cir. 1981).
The issue is factual and to be resolved from all the
evidence and is, in great part, a question of judgment rather
than mathematics. See Hamm v. Commissioner, 325 F.2d 934, 940
(8th Cir. 1963), affg. T.C. Memo. 1961-347; Duncan Indus., Inc.
v. Commissioner, 73 T.C. 266 (1979). The parties, in support of
their positions, have relied on their expert witnesses’ reports
concerning the subject real estate. In making our determination
we may embrace or reject expert testimony if, in our judgment,
either approach is appropriate. See Helvering v. National
Grocery Co., 304 U.S. 282 (1938); Sammons v. Commissioner, 838
F.2d 330 (9th Cir. 1988). If an expert’s opinion is of no
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