- 183 -
AFTR 2d 75-6235, 75-2 USTC par. 9774 (10th Cir. 1975), affg. T.C.
Memo. 1974-220.
C. Petitioners’ Aggregation and Offset Argument
The transferred interests whose values remained in dispute
at the date of trial are listed in the Appendix. The values of
transferred interests in the other companies (undisputed
companies) were not in controversy by the time of trial either
because (1) respondent had not adjusted their values in the
statutory notices or (2) the parties stipulated that respondent
would no longer assert an adjustment in connection with those
interests. Even so, petitioners submitted appraisal information
into evidence that valued some, but not all, of the undisputed
companies as of the valuation dates.
In a footnote to their opening brief, petitioners argue that
if the Court finds that the book value buy-sell price was not
controlling for estate and gift tax purposes, an offset should be
allowed in determining the overall value of the gross estate and
taxable gifts to the extent that the value of any interest
included in the gross estate or subject to gift tax is less than
book value. Petitioners reason that the estate tax is imposed on
the fair market value of the total taxable estate, and that the
gift tax is imposed on the fair market value of all taxable gifts
during the taxable period. Therefore, according to petitioners,
any overreported value should offset any underreported value in
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