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death. All five leases for the five leased tracts contain rent
escalation clauses; as escalated, the leases constituted the
prevailing rents during the statutory period on that type of
land. Both the actual rents and State and local property taxes
were explained and are fully substantiated with original source
data. There is no adjustment to rents because petitioner used
only actual current rents during the statutory period.
Respondent also asserts that the five estate tracts and the
five leased tracts are not comparable in any manner in regard to
the rental values. Respondent contends that the regulations
require that "generally accepted real property valuation rules"
be applied to determine comparability of the property. Sec.
20.2032A-4(d), Estate Tax Regs. Respondent asserts that the
maximum period allowed under real estate valuation rules is 5
years prior to the valuation date. On brief, respondent states
this argument as follows:
Leases that establish the applicable rents are leases that
would have been negotiated and entered into during the
five-year period. Leases that were negotiated more than
five years prior to the date of death do not accurately
reflect the economic conditions at the date of death and
the current rental values of comparable lands.
Comparability must be based on numerous factors, no one of
which is determinative. See sec. 20.2032A-4(d), Estate Tax Regs.
All factors generally considered in real estate valuation are to
be considered in determining comparability under section 2032A.
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