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Respondent’s argument rests upon section 2032A(e)(7), which
provides that unless an exception applies, the value of a farm
for farming purposes shall be measured according to the
capitalization of rents formula of that section. See sec.
2032A(e)(7)(A), (C). Only two exceptions are potentially
applicable here: (1) Where there is no comparable land from
which average annual gross cash rental may be determined or (2)
where the executor elects to value the farm property under
section 2032A(e)(8). See sec. 2032A(e)(7)(C).
In this case, petitioner has not proven that there was no
comparable land from which the average annual gross cash rental
may be determined within the meaning of section
2032A(e)(7)(C)(i). In fact, petitioner has acknowledged
implicitly that there was comparable land available. The only
dispute, therefore, is whether petitioner elected to use the
valuation formula of section 2032A(e)(8), as required by section
2032A(e)(7)(C)(ii).
By regulation, the Secretary has determined that “If the
executor does not identify such [actual comparable] property and
cash rentals, all specially valued real property must be valued
under the rules of section 2032A(e)(8)”. Sec. 20.2032A-
4(b)(2)(i), Estate Tax Regs. The regulation provides, in effect,
that where an executor fails to provide sufficient documentation
to use the capitalization of rents method described in section
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