- 35 -
Commissioner, 109 T.C. 133, 171 (1997): "We shall disregard any
opinion of an expert that constitutes nothing more than that
expert's legal opinion or conclusion about a particular matter."
Mr. Maloy further states the following: "Lease
comparability under section 2032A(e)(7) would require recent
leases, foreseeable within the 5-year average. This is
relatively easy in row crop valuation, but generally eliminates
the use of this section in timber land valuation."
Two consecutive paragraphs establish that the protection
afforded farms by section 2032A was intended to apply to
timberland. Section 2032A(e)(7) sets forth the "Method of
valuing farms." Section 2032A(e)(4) and (5) leaves no doubt that
timber operations are included under section 2032A(e)(7) and (8).
Furthermore, factor (7) under section 20.2032A-4(d), Estate Tax
Regs., obviously contemplates that rented timberland may be
comparable property.
As stipulated, the leases represented the typical timber
leases in effect in western Alabama during the 5-year statutory
period. Moreover, the inflation-adjusted rents paid under these
leases constituted the prevailing rents in effect during the
statutory period. All of the leases on the five leased tracts
have escalation clauses. Moreover, in contrast to the fatal
"judgment call" as to the annual rents in Estate of Thompson v.
Page: Previous 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 NextLast modified: May 25, 2011