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We find that the estate did not adequately determine
reasonable prices at which the five advertised properties could
sell. Asked how prices were calculated, Mr. Renbarger stated
simply that he put a figure on them and waited for an offer to
come along. One witness for the estate testified that little
research was conducted to ascertain proper sales prices and that
Mr. Renbarger would merely declare a price and place a “for sale”
sign on the property. These arbitrary price determinations are
exemplified by one property’s being priced at three times the
value at which it was reported on the estate’s Federal estate tax
return.7
While the Court does not begrudge Mr. Renbarger’s attempt to
profit from sales of estate property, he cannot do so and
simultaneously urge the Court to find that the estate faced an
undue hardship because it could sell only at sacrifice prices.
See sec. 20.6161-1(a)(2)(ii), Example (2), Estate Tax Regs. No
undue hardship exists where a taxpayer can sell at current market
values. See sec. 1.6161-1(b), Income Tax Regs. (if a market
exists, the sale of property at the current market price is not
ordinarily considered an undue hardship). Mr. Renbarger has
failed to demonstrate that he ever offered the five properties at
7The reported value of the Garden Ridge Property in the
estate’s Federal estate tax return was $1,294,700. The asking
price was approximately $3,833,000.
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