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were entitled to use the valuation formula of section
2032A(e)(8), it has not supplied sufficient information to comply
with the requirements of that section. We reject respondent’s
contentions and hold that petitioner made a valid election to
value the properties under section 2032A(e)(8).
a. Section 20.2032A-4(b)(2)(i), Estate Tax Regs.
The first issue is whether petitioner elected to value the
property under section 2032A(e)(8). Citing section 20.2032A-
4(b)(2)(i), Estate Tax Regs., petitioner argues that it made an
election, by default, to value the properties under the method
provided by section 2032A(e)(8). Respondent disagrees.20
20Respondent’s position on brief contradicts the position
taken in a motion in limine. In that motion, respondent stated
as follows:
Even though an estate initially has elected to
value farm property pursuant to � 2032A(e)(7), the
estate can still avail itself of the special use
valuation provided under I.R.C.� 2032A(e)(8). Section
20.2032A-4(2)(i), Estate Tax Regs. states, in part,
“[i]f the executor does not identify such property and
cash rentals, all specially valued real property must
be valued under the rules of section 2032A(e)(8) if
special use valuation has been elected.” Therefore, if
the estate attempts to comply with � 2032A(e)(7) but
fails to identify the comparable property and cash
rentals, the estate may qualify under � 2032A(e)(8),
provided the information submitted by the estate
substantially complies with the requirements of the
regulations. * * *
Respondent subsequently conceded on brief that whether petitioner
substantially complied with the requirements of sec. 2032A and
related regulations is no longer an issue.
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