- 10 - 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 toPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
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