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The parties agree that the fair market value of a 100-
percent interest in the Wells Fargo property was $987,950 on the
valuation date.
OPINION
For Federal estate tax purposes, property includable in the
gross estate is generally included at its fair market value on
the date of decedent's death. See secs. 2031(a) and 2032(a);
sec. 20.2031-1(b), Estate Tax Regs.1 Fair market value is
defined as the price that a willing buyer would pay a willing
seller, both persons having reasonable knowledge of all relevant
facts and neither person being under a compulsion to buy or to
sell. See sec. 20.2031-1(b), Estate Tax Regs.; see also United
States v. Cartwright, 411 U.S. 546, 551 (1973); Mandelbaum v.
Commissioner, T.C. Memo. 1995-255, affd. without published
opinion 91 F.3d 124 (3d Cir. 1996). The willing buyer and the
willing seller are hypothetical persons, instead of specific
individuals and entities, and the characteristics of these
imaginary persons are not necessarily the same as the personal
characteristics of the actual seller or a particular buyer. See
Estate of Bright v. United States, 658 F.2d 999, 1005-1006 (5th
Cir. 1981). Fair market value is a factual determination for
1 Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect as of the date of decedent’s
death, and all Rule references are to the Tax Court Rules of
Practice and Procedure.
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