- 44 -
therefore, we deny respondent’s motion and admit the subject
reports.
C. Requirements for Special Use Valuation
Only one of the requirements for a valid section 2032A
election is at issue here; i.e., the requirement that a notice of
election contain the method of valuation based on use. See sec.
20.2032A-8(a)(3)(viii), Estate Tax Regs. Section 2032A(e)(7)
provides the general formula and method to be used in valuing
farm property:
(7) Method of valuing farms.--
(A) * * * the value of a farm for farming
purposes shall be determined by dividing–-
(i) the excess of the average
annual gross cash rental for comparable
land used for farming purposes and
located in the locality of such farm
over the average annual State and local
real estate taxes for such comparable
land, by
(ii) the average annual effective
interest rate for all new Federal Land
Bank loans.
For purposes of the preceding sentence, each average
annual computation shall be made on the basis of the 5
most recent calendar years ending before the date of
the decedent’s death.
* * * * * * *
(C) Exception.-–The formula provided by
subparagraph (A) shall not be used-–
(i) where it is established that
there is no comparable land from which
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