Estate of Michel Dunia, Deceased, Renee Hawley and Michel Dunia, Jr., Executors and Trustees - Page 6

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                                       OPINION                                        
               Section 20011 imposes a Federal estate tax “on the transfer            
          of the taxable estate of every decedent who is a citizen or                 
          resident of the United States”.  The value of the gross estate              
          includes the value of all property to the extent of the                     
          decedent’s interest therein on the date of death.  Sec. 2033.               
          The term “value” means fair market value, which is defined for              
          Federal estate tax purposes as “the price at which the property             
          would change hands between a willing buyer and a willing seller,            
          neither being under any compulsion to buy or to sell and both               
          having reasonable knowledge of relevant facts.” United States v.            
          Cartwright, 411 U.S. 546, 551 (1973); sec. 20.2031-1(b), Estate             
          Tax Regs.                                                                   
               The parties dispute the value of the Victorville property,             
          which is includable in decedent’s gross estate.  At trial, the              
          estate called B.G. Thompson as an expert valuation witness.  Mr.            
          Thompson prepared an expert witness report, as supplemented, in             
          accordance with Rule 143.  Respondent called Robert Perdue as an            
          expert valuation witness.  Mr. Perdue prepared an expert witness            
          report, as supplemented, in accordance with Rule 143.  In                   
          addition, the estate sought testimony from Mr. Dicker as to his             
          opinion of the value of the Victorville property.  While expert             

               1Unless otherwise indicated, all section references are to             
          the Internal Revenue Code, and all Rule references are to the Tax           
          Court Rules of Practice and Procedure.                                      





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