Estate of Mary D. Maggos - Page 26




                                       - 26 -                                         
          petitioner’s “incomplete gift argument”, and for the same                   
          reasons, we also reject petitioner’s “bad business bargain” or              
          “unilateral mistake” arguments.                                             
          Valuation                                                                   
               Valuation is a question of fact, and 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., 304 U.S. 282, 294-295            
          (1938).                                                                     
               Fair market value is defined for Federal estate and gift               
          tax purposes as the price that a willing buyer would pay a                  
          willing seller, both having reasonable knowledge of all the                 
          relevant facts and neither being under compulsion to buy or to              
          sell.  See United States v. Cartwright, 411 U.S. 546, 551 (1973)            
          (citing sec. 20.2031-1(b), Estate Tax Regs.); see also Snyder v.            
          Commissioner, 93 T.C. 529, 539 (1989).  The willing buyer and the           
          willing seller are hypothetical persons, rather than specific               
          individuals or entities, and the individual characteristics of              
          these hypothetical persons are not necessarily the same as the              
          individual characteristics of the actual seller or the actual               
          buyer.  See Estate of Curry v. United States, 706 F.2d 1424,                
          1428-1429, 1431 (7th Cir. 1983); Estate of Bright v. United                 
          States, 658 F.2d 999, 1005-1006 (5th Cir. 1981); Estate of                  
          Newhouse v. Commissioner, 94 T.C. 193, 218 (1990); see also                 






Page:  Previous  16  17  18  19  20  21  22  23  24  25  26  27  28  29  30  31  32  33  34  35  Next

Last modified: May 25, 2011