Estate of Elma Middleton Dailey, Deceased, Donor, K. Robert Dailey, II, Executor - Page 7




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          the documents to determine if the FLP had any such gains.                   
          Respondent’s expert’s testimony was contradictory, unsupported by           
          the data, and inapplicable to the facts.                                    
               We are “not bound by the opinion of any expert witness when            
          that opinion is contrary to our own judgment.”  Estate of Gilford           
          v. Commissioner, 88 T.C. 38, 56 (1987).  Although neither expert            
          was extraordinary, petitioners’ expert provided a more convincing           
          and thorough analysis than respondent’s expert.  We conclude that           
          an aggregate marketability and minority discount of 40 percent is           
          warranted and is applicable to the aforementioned interests.                
               Section 6651(a)(1) imposes an addition to tax for failure to           
          file a required return on the date prescribed.  This addition to            
          tax is imposed on the amount of tax required to be shown on the             
          return.  Although decedent’s gift tax return was filed after the            
          prescribed due date, the property valuation on the return was               
          correct and, after application of decedent’s unified credit, no             
          gift tax was due.  Accordingly, the estate is not liable for the            
          section 6651(a)(1) addition to tax.                                         
               Contentions we have not addressed are moot, irrelevant, or             
          meritless.                                                                  
               To reflect the foregoing,                                              

                                                  Decisions will be entered           
                                             for petitioners.                         







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Last modified: May 25, 2011