Estate of Lewis A. Bailey, Deceased, Frances Jeanette Foster, Executrix - Page 22

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          motel valuation--provides no meaningful assistance in measuring             
          any such impairment of value.  Nor does the record otherwise                
          provide a reliable basis for estimating any such impairment of              
               Moreover, if we were to assume, for sake of argument, that             
          the gross estate, as determined by respondent (and as reported on           
          decedent’s estate tax return), should be adjusted downward to               
          reflect some impairment to the value of decedent’s C&L Bailey               
          stock resulting from the divided ownership of parcel 2, it would            
          follow (as petitioner concedes) that decedent’s gross estate                
          should be correspondingly increased to reflect decedent’s                   
          inadvertently omitted individual ownership interest in parcel 2.            
          Petitioner has not shown that the net result of these correlative           
          adjustments would be to the estate’s advantage.  To state the               
          problem more precisely, petitioner has not shown that ignoring              
          any such title-related impairment to the value of the California            
          motel resulted in an overstatement of decedent’s gross estate               
          greater than the understatement of the gross estate that resulted           
          from the omission of decedent’s individual ownership interest in            

               7 As previously discussed, Schwartz deviated from the                  
          Ohrmund report in making a $193,000 downward adjustment to                  
          reflect the divided ownership of parcel 2.  Schwartz, however,              
          offered no explanation or support for this downward adjustment.             
          Consequently, his report is of little assistance in measuring the           
          effect of the “clouded title” of parcel 2 on the value of the               
          California motel.  Petitioner has not argued that we should rely            
          on Schwartz’s conclusion in this regard.                                    

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