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OPINION
I. Value of Decedent’s Real Property
The value of decedent’s gross estate includes the fair
market value of the real property that decedent owned at her
death. See sec. 2031(a);12 United States v. Cartwright, 411 U.S.
546, 551 (1973); sec. 20.2031-1(b), Estate Tax Regs.
The parties have not agreed on the fair market value of
decedent’s real property, and so we have to find the fair market
value. See Buffalo Tool & Die Manufacturing Co. v. Commissioner,
74 T.C. 441, 451-452 (1980).
Generally, the fair market value of property is the price at
which a willing buyer will purchase the property from a willing
seller, when neither is acting under compulsion and both are
fully informed of the relevant facts and circumstances. See,
e.g., McShain v. Commissioner, 71 T.C. 998, 1004 (1979); sec.
20.2031-1(b), Estate Tax Regs. Respondent’s determinations in
the notice of deficiency as to the fair market values of the
subject properties are presumptively correct, and petitioner has
the burden of proving that the fair market values are lower. See
Rule 142(a); Welch v. Helvering, 290 U.S. 111 (1933). However,
12 SEC. 2031. DEFINITION OF GROSS ESTATE.
(a) General.--The value of the gross estate of the
decedent shall be determined by including to the extent
provided for in this part, the value at the time of his
death of all property, real or personal, tangible or
intangible, wherever situated.
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