Estate of George C. Blount, Deceased, Fred B. Aftergut, Executor - Page 55

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          1996 Agreement, we have no confidence that the 1996 Agreement was           
          comparable to an arm’s-length bargain.                                      
               Insofar as the estate has failed to persuade us that the               
          Modified 1981 Agreement has met the requirements of section                 
          2703(b)(3), the Modified 1981 Agreement must also be disregarded            
          under section 2703(a) when determining the value of decedent’s              
          BCC shares for Federal estate tax purposes.                                 
          II. Valuation of Decedent’s BCC Shares                                      
               Having determined that the Modified 1981 Agreement cannot              
          control the value of decedent’s BCC stock for Federal estate tax            
          purposes, we turn next to the task of determining its fair market           
          value as of the valuation date.  In the notice of deficiency,               
          respondent determined that decedent’s 43,080 BCC shares had a               
          fair market value of $7,921,975.  The burden of proof rests with            
          the estate to demonstrate that respondent’s determination is                
          erroneous.29  See Rule 142(a).                                              
               A.   Fair Market Value                                                 
               Valuation is a question of fact, and the trier of fact must            
          weigh all relevant evidence to draw the appropriate inferences.             
          Commissioner v. Scottish Am. Inv. Co., 323 U.S. 119, 123-125                
          (1944); Helvering v. Natl. Grocery Co., 304 U.S. 282,                       

               29 The estate has not raised sec. 7491, which would shift              
          the burden of proof under certain circumstances.  Accordingly, we           
          deem that issue waived.                                                     

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