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to Zurich to be refunded to WSA’s customers. That litigation was
pending on September 28, 1995.
OPINION
A. Contentions of the Parties
The estate contends that the value of decedent’s 178 shares
of WSA stock (a 61.59-percent interest) on September 28, 1995,
was $920,800. Respondent contends that the value was $1,746,000
on that date.1
A tax is imposed on the fair market value of the decedent’s
property on the date of death. Secs. 2001, 2031. The fair
market value of property 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.; sec. 25.2512-1, Gift Tax Regs. The
estate bears the burden of proof.2 Rule 142(a)(1).
Both parties rely on the testimony of experts to establish
the fair market value of decedent’s WSA stock. We may accept or
reject expert testimony according to our own judgment, and we may
1 In objecting to the estate’s proposed ultimate finding of
fact, respondent contends that the fair market value was
$1,757,911. However, respondent’s proposed ultimate finding of
fact is that the value of decedent’s interest in WSA was
$1,746,000, the value that respondent determined. Respondent
does not explain this difference.
2 The estate concedes that sec. 7491 does not apply because
the examination began before July 22, 1998.
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