- 16 - Agreement is to be taken into account in valuing the gross estate. Accordingly, we must consider the nature of the interest to be included in decedent’s gross estate. As a general rule, the Internal Revenue Code imposes a Federal tax “on the transfer of the taxable estate of every decedent who is a citizen or resident of the United States.” Sec. 2001(a). Such taxable estate, in turn, is defined as the “value of the gross estate”, less applicable deductions. Sec. 2051. Section 2031(a) then specifies that the “value of the gross estate of the decedent shall be determined by including to the extent provided for in this part [sections 2031 through 2046], the value at the time of his death of all property, real or personal, tangible or intangible, wherever situated.” In this connection, section 2033 broadly states that the “value of the gross estate shall include the value of all property to the extent of the interest therein of the decedent at the time of his death.” Regulations further explain the valuation concept as follows: The value of every item of property includible in a decedent’s gross estate under sections 2031 through 2044 is its fair market value at the time of the decedent’s death * * * . The fair market value is the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts. * * * [Sec. 20.2031-1(b), Estate Tax Regs.]Page: Previous 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Next
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