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determining the deficiency in estate tax, respondent valued the
shares at $47,900 a share.
Petitioner bears the burden of proof. Rule 142(a).
II. Law
Section 2001(a) imposes a tax on “the transfer of the
taxable estate of every decedent who is a citizen or resident of
the United States.” Section 2031(a) provides: “The value of the
gross estate of the decedent shall be determined by including to
the extent provided for in this part, the value at the time of
his death of all property, real or personal, tangible or
intangible, wherever situated.”
Fair market value is the standard for determining the value
of property for Federal estate tax purposes. United States v.
Cartwright, 411 U.S. 546, 550-551 (1973). Section 20.2031-1(b),
Estate Tax Regs., defines fair market value 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
sell and both having reasonable knowledge of relevant facts.”
The willing buyer and willing seller are hypothetical persons,
rather than specific individuals or entities, and their
characteristics are not necessarily the same as those of the
actual buyer or seller. Estate of Newhouse v. Commissioner, 94
T.C. 193, 218 (1990) (citing Estate of Bright v. United States,
658 F.2d 999, 1006 (5th Cir. 1981)). The hypothetical willing
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