Estate of Nathaniel M. Leichter, Deceased, Steven Leichter, Co-Special Administrator - Page 10




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          the statutory notice of deficiency.  Based on its expert’s                  
          report, respondent, for purposes of trial, contends that the fair           
          market value was $2,150,000.  The estate, for purposes of trial,            
          contends that the appraisal relied upon for purposes of the                 
          estate tax return was erroneous or flawed and that the fair                 
          market value is, at most, $800,000.  At trial, both sides to this           
          controversy offered witnesses supporting their respective                   
          positions.                                                                  
               Property includable in a decedent’s gross estate is                    
          generally included at its fair market value on the date of death.           
          Sec. 2031(a); sec. 20.2031-1(b), Estate Tax Regs.  Fair market              
          value is a factual determination, and the trier of fact must                
          weigh all relevant evidence of value and draw appropriate                   
          references.  Commissioner v. Scottish Am. Inv. Co., 323 U.S. 119,           
          123-125 (1944); Helvering v. Natl. Grocery Co., 304 U.S. 282, 294           
          (1938); Symington v. Commissioner, 87 T.C. 892, 896 (1986).                 
               To determine the value of an unlisted stock, an actual                 
          arm’s-length sale of a similar stock within a reasonable time               
          before or after decedent’s date of death is indicative of its               
          fair market value.  Ward v. Commissioner, 87 T.C. 78, 101 (1986).           
          In the absence of arm’s-length sales, fair market value                     
          represents the price that a hypothetical willing buyer would pay            
          a hypothetical willing seller, both persons having reasonable               
          knowledge of all relevant facts and neither person compelled to             







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