Estate of Eleanor T.R. Trotter - Page 19

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               under section 2036 is only a corresponding proportion                  
               of the amount described in the preceding sentence.* * *                
               [Sec. 20.2036-1(a), Estate Tax Regs.]                                  
          Thus, since decedent retained possession and enjoyment of her               
          entire residence, the full value of the condominium is includable           
          in her gross estate.                                                        
               The standard for ascertaining such value is then set forth             
          in section 20.2031-1(b), Estate Tax Regs.  Specifically, property           
          is included in the gross estate at its “fair market value”,                 
          defined as “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.”  Id.  The date with respect to                
          which the asset is valued is either the date of death or, if the            
          alternate valuation method under section 2032 is elected, the               
          date prescribed in that section.  Sec. 20.2031-1(b), Estate Tax             
          Regs.  As pertinent here, section 2032(a)(1) states that property           
          disposed of within 6 months of the decedent’s death is valued as            
          of the date of its disposition.                                             
               Decedent’s condominium was sold approximately 5-1/2 months             
          after her death for $155,000.  Respondent determined a value of             
          $125,000 in the notice of deficiency.  The estate has offered no            
          further evidence and no argument on the issue of valuation.  We             

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