Terry O'Neal Styron - Page 8




                                        - 7 -                                         

          Regs.; United States v. Cartwright, 411 U.S. 546, 550-551 (1973);           
          Johnson v. Commissioner, 85 T.C. 469 (1985).  Fair market value             
          is a question of fact to be determined from an examination of the           
          entire record.  See Lio v. Commissioner, 85 T.C. 56, 66 (1985),             
          affd. sub nom. Orth v. Commissioner, 813 F.2d 837 (7th Cir.                 
          1987).  Fair market value is a question of judgment rather than             
          mathematics.  See Hamm v. Commissioner, 325 F.2d 934, 940 (8th              
          Cir. 1963), affg. T.C. Memo. 1961-347.  Valuation is an                     
          approximation derived from all the evidence.  See Helvering v.              
          Safe Deposit & Trust Co., 316 U.S. 56, 66-67 (1942).                        
               No one from IMS or any of the appraisers testified at trial.           
          Petitioner presented no evidence to refute the conclusions of               
          respondent's appraisers or to show why the $80,000 value                    
          determined by his appraiser grossly exceeded the $47,960 value              
          determined through two reputable "blue book" guides.  Weighing              
          heavily against petitioner's $80,000 valuation claim is the sale            
          of the boat for $35,000 by IMS less than 1 month after IMS                  
          acquired it from him.  On this record, the Court is satisfied               
          that the boat did not have a value in excess of $47,960 on the              
          date of the bargain sale on December 30, 1994.  Respondent,                 
          therefore, is sustained.                                                    











Page:  Previous  1  2  3  4  5  6  7  8  9  Next

Last modified: May 25, 2011