- 48 -
year average.” Thus, the report does not indicate the actual
cash rentals of comparable real property for the period 1987-91.
Instead, the report provides actual cash rentals of 10 comparable
properties for 1995 and an impermissible appraisal asserting that
the 1995 rental values were indicative of the 1987-91 rental
values. See sec. 2032A-4(b)(2)(iii), Estate Tax Regs. As in
Estate of Strickland, petitioner has failed to identify annual
gross cash rentals of comparable real property and State and
local taxes for such comparable properties for the requisite 5
calendar years preceding decedent’s date of death. Petitioner’s
failure to comply with the requirements of section 2032A(e)(7)(A)
and the regulations thereunder precludes special use valuation
for the properties under that section. See Estate of Strickland
v. Commissioner, supra at 33.
2. Section 2032A(e)(8)
Petitioner maintains, in the alternative, that it was
entitled to value the properties under section 2032A(e)(8), that
the information submitted to the Service within the 90-day period
was adequate for that purpose, and that, in essence, respondent’s
failure to mention section 2032A(e)(8) at any time before trial
makes the requirements of that section new matter. Respondent
takes exception to all aspects of petitioner’s alternative
argument. In essence, respondent contends that petitioner may
not switch theories in midstream, and that, even if petitioner
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