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upon the value of the taxable estate, plus taxable gifts made after
1976 and not includable in the gross estate, less gift taxes
payable on post-1976 taxable gifts. A decedent’s taxable estate is
determined by determining the value of the decedent’s gross estate
and by deducting therefrom those deductions provided for in
sections 2053 through 2056. Sec. 2051.
The parties in this case disagree as to whether decedent’s
gross estate includes (1) the value of interests in family limited
partnerships and in the corporate general partner of those
partnerships that decedent possessed at death or transferred prior
to death (and if so, the value of such interests), or (2) pursuant
to section 2036(a), the value of the property which decedent
transferred to the family limited partnerships and related
corporate general partners.
Decedent’s estate maintains that decedent’s gross estate
includes the value of his interests in the family limited
partnerships (not the value of the property transferred by him to
the partnerships) and that the value of each of his partnership
interests at the date of transfer (that is, the date of the gift or
the date of decedent’s death) is decedent’s proportionate share of
the fair market value of the assets of the partnership at the date
of transfer, discounted by 40 percent to reflect lack of control as
well as a lack of marketability.
On the other hand, asserting two alternative theories,
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