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accord with this Court’s Rules of Practice and Procedure.
Respondent’s expert, however, was found not to be specifically
qualified to assist the trier of fact (Court) on the question of
the discount to be applied, if any, to a fractional interest in
timberland.
It is noted that the parties stipulated the fair market
value of the undivided fee interest. Further, the parties agree
that there should be some discount because of the nature of the
decedents’ ownership. The only question we consider is the
amount of the discount applicable to the fractional interests
held by the decedents at their dates of death.
Valuation of an interest in property is a highly factual
pursuit, and it is within the Court’s discretion to evaluate the
cogency of the expert witnesses’ conclusions or opinions.
Sammons v. Commissioner, supra. Opinions of experts are
evaluated in light of each expert’s demonstrated qualifications
and the evidence in the record. Estate of Davis v. Commissioner,
110 T.C. 530, 538 (1998) (and cases cited therein). We may
accept or reject all or part of an expert’s opinion. Id.
The Estates’ Expert Witnesses
The estates rely on three expert witnesses to support their
proposed discounts for the partial interests under consideration.
Respondent attempted to expose the weaknesses of the estates’
experts in order to show that estates’ proposed discounts are
excessive.
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Last modified: May 25, 2011