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had made a default election to value its property under section
2032A(e)(8).
In Estate of Strickland, we did not need to decide the
meaning of section 20.2032A-4(b)(2)(i), Estate Tax Regs., because
following the regulation would have led to the same result. That
was because, under the facts present in Estate of Strickland, “a
valuation pursuant to section 2032A(e)(8) will equal the fair
market value of the property on the date of decedent’s death.”
Estate of Strickland v. Commissioner, supra at 33.
Section 2032A provides the Secretary with the authority to
determine by regulation how section 2032A elections are to be
made. See sec. 2032A(d)(1); Estate of Gunland v. Commissioner,
88 T.C. 1453, 1455 (1987). By regulation, the Secretary has
determined that an executor elects the application of section
2032A(e)(8) whenever an executor, having elected special use
valuation, fails properly to document comparable property under
the rules of section 2032A(e)(7). See sec. 20.2032A-4(b)(2)(i),
Estate Tax Regs. Respondent has not supplied a cogent reason why
we should disregard the plain meaning of section 20.2032A-
4(b)(2), Estate Tax Regs. We conclude that the apparent
inconsistency between the statute and the regulation noted in
Estate of Strickland evaporates when considered in light of the
Secretary’s legislatively conferred authority to determine the
manner in which section 2032A elections are to be made.
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