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In order to measure the special use value of a farm under
section 2032A(e)(7), an executor must use information on actual
tracts of comparable real property for each of the 5 calendar
years preceding the year in which the decedent died. See sec.
2032A(e)(7)(A); sec. 20.2032A-4(a), Estate Tax Regs. In this
case, the applicable years are 1987 through 1991. Appraisals or
other statements regarding rental value or areawide averages of
rentals, including those compiled by the U.S. Department of
Agriculture, may not be used because they are not true measures
of the actual cash rental value of comparable properties in the
same locality as the specially valued property. See sec.
20.2032A-4(b)(2)(iii), Estate Tax Regs.
Petitioner’s special use valuation report, submitted on
December 12, 1995, within the 90-day period, provided current
lease information on 10 comparable properties and stated that
“Rents for the land types on the subject have been static and
current levels are representative of rents over the last five to
ten years and are considered indicative of a five year average.”
Petitioner argues that it complied with the regulations
because the assertion that rents were static rendered unnecessary
any separate listing of actual rents during 1987-91. However,
the language of the report belies petitioner’s claim that the
current rents on each property were static. Regarding rents, the
report asserts that “rental levels are * * * indicative of a five
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