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the main house) was $1,872.7 Respondent determined that the
fair market rent of decedent's interests totaled $16,595, and
that the difference between actual rent charged and fair market
rent constituted a taxable gift.8
It is conceded that Coastal Ranches paid property taxes and
other expenses in connection with its leases of decedent’s ranch
properties. Dean testified that Coastal Ranches paid all the
property taxes, insurance, and maintenance (collectively, the
property expenses) on all the fences and ranch buildings.
However, petitioner was not able to establish the amounts of
those expenditures.9
Petitioner argues that the Court should estimate the amounts
of the property expenses paid pursuant to the leases and thereby
find that decedent charged a fair market rent. See Cohan v.
7The difference between the sum of these figures, $16,597,
and the figure used in the notice, $16,595, is unexplained.
8The parties stipulated that decedent rented the ranch
lands, in toto, to Coastal Ranches for $5,000 in 1989, $5,000 in
1990, and $10,000 in 1991.
9Petitioner failed to share the salient documents with
respondent's counsel 15 days before trial, as required by the
Court's Standing Pre-Trial Order. Respondent objected to a
question put to Dean regarding the amounts of property-related
expenses, on the grounds that the records themselves were the
best evidence of the expenses. We sustained the objection.
Because the records had not been exchanged 15 days before trial
as required by the Court's Standing Pre-Trial Order, we also
sustained respondent's objection to petitioner's introduction of
the records themselves into evidence.
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