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The estate’s suggested 50-percent discount for lack of
control and lack of marketability would not reduce the value of
the properties below the value reported on the estate tax return.
The estate is not seeking to establish a value less than that
reported on the estate tax return. The Hoffman opinion on
discounts is reasonable and is not contradicted by reliable
evidence. Thus we adopt it. See, e.g., Estate of Hall v.
Commissioner, 92 T.C. at 342.
2. The Orange County Properties
The Hoffman appraisal used a similar analysis for the Orange
County properties as it used for the University property, looking
to discounts for comparable partnerships. Therefore, the Hoffman
appraisal applied a 35-percent combined discount for lack of
marketability and lack of control on the West Collins property, a
35-percent combined discount on the Enterprise property, and a
40-percent combined discount on the North Main property. The
Hoffman appraisal also used an additional 5-percent discount for
lack of voting rights on each of the three properties.
Respondent’s appraisal did not discount the three Orange
County properties based on the effect of the BLA. Thomson
testified that, had he assumed that the BLA also encumbered the
Orange County properties, the Orange County properties would also
be discounted but at a different discount than that determined
for the University property. Thomson estimated discounts of
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