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Petitioner attached to the estate’s Federal estate tax
return an appraisal of decedent’s minority interest in Green
Light prepared by Clark C. Munroe (Munroe). Munroe estimated,
and petitioner reported on that return, that the fair market
value of decedent’s 184 shares of Green Light stock was
$1,810,000 as of February 1, 1993.
D. Notice of Deficiency
Respondent determined in the notice of deficiency that the
fair market value of decedent’s 184 shares of Green Light stock
was $4,080,200. Respondent now concedes that the value of
decedent’s stock was not more than $2,713,000.
OPINION
The issue for decision is the fair market value of
decedent’s 184 shares of Green Light stock on the day decedent
died, February 1, 1993.
A. Fair Market Value
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 the relevant facts. See United
States v. Cartwright, 411 U.S. 546, 551 (1973); sec. 20.2031-
1(b), Estate Tax Regs.; sec. 25.2512-1, Gift Tax Regs.2 If
2 Petitioner bears the burden of proving that respondent’s
determination in the notice of deficiency is erroneous. See Rule
142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933).
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