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special uses that are realistically available because of the
property’s adaptability to a particular business. Mitchell v.
United States, 267 U.S. 341, 344-345 (1925); Symington v.
Commissioner, 87 T.C. 892, 896 (1986); Stanley Works v.
Commissioner, 87 T.C. 389, 400 (1986); Estate of Proios v.
Commissioner, T.C. Memo. 1994-442. Fair market value is not
affected by whether the owner has actually put the property to
its highest and best use. The reasonable and objective possible
uses for the property control the valuation thereof. United
States v. Meadow Brook Club, 259 F.2d 41, 45 (2d Cir. 1958);
Stanley Works v. Commissioner, supra at 400. The hypothetical
willing buyer and seller are presumed to be dedicated to
achieving the maximum economic advantage, Estate of True v.
Commissioner, T.C. Memo. 2001-167, and the “hypothetical sale
should not be construed in a vacuum isolated from the actual
facts”, Estate of Andrews v. Commissioner, 79 T.C. 938, 956
(1982).
Here, the parties dispute whether any value should be given
to the Sta-Home tax-exempt entities’ cost-shifting attribute.
Cost-shifting could attract prospective purchasers, such as
hospitals, that desired to acquire a home health care agency and
use its cost-shifting capacity. At our request, the parties have
discussed whether attributing value to this mechanism is
consistent with the requirement that fair market value be
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