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determined by a forced sale price. Nor is the fair
market value of an item of property to be determined by
the sale price of the item in a market other than that
in which such item is most commonly sold to the public,
taking into account the location of the item wherever
appropriate. Thus, in the case of an item of property
includible in the decedent’s gross estate, which is
generally obtained by the public in the retail market,
the fair market value of such an item of property is
the price at which the item or a comparable item would
be sold at retail. For example, the fair market value
of an automobile (an article generally obtained by the
public in the retail market) includible in the
decedent’s gross estate is the price for which an
automobile of the same or approximately the same
description, make, model, age, condition, etc., could
be purchased by a member of the general public and not
the price for which the particular automobile of the
decedent would be purchased by a dealer in used
automobiles. * * * The value is generally to be
determined by ascertaining as a basis the fair market
value as of the applicable valuation date of each unit
of property. For example, in the case of shares of
stock or bonds, such unit of property is generally a
share of stock or a bond. * * * [Sec. 20.2031-1(b),
Estate Tax Regs.]
For Federal gift tax purposes, the relevant regulations contain
virtually identical language. See sec. 25.2512-1, Gift Tax Regs.
Thus, in the case of Federal estate and gift taxes, the
regulations provide that the relevant market for the hypothetical
sale is the “public” market or, in other words, the retail market
in which the item is sold to the ultimate consumer; i.e., the
customer who does not hold the item for subsequent resale.72
72 In the case of the Federal income tax, more specifically,
charitable contributions, the regulations set forth rules for
determining the value of items which a taxpayer sells in the
course of its business. The regulations provide:
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