-10-
at which the property would change hands between a [hypothetical]
willing buyer and a [hypothetical] willing seller, neither being
under any compulsion to buy or to sell and both having reasonable
knowledge of relevant facts.” Sec. 20.2031-1(b), Estate Tax
Regs.; see also Propstra v. United States, 680 F.2d 1248,
1251-1252 (9th Cir. 1982). See generally Bank One Corp. v.
Commissioner, 120 T.C. 174, 302-306 (2003), for a detailed
discussion of the criteria underlying a determination of fair
market value. In deciding these fair market values, we note
that:
The fair market value of a particular item of property
includible in the decedent’s gross estate is not to be
determined by a forced sale price. Nor is the fair
market value of an item of property to be determined by
the sale price of the item in a market other than that
in which such item is most commonly sold to the public,
taking into account the location of the item wherever
appropriate. Thus, in the case of an item of property
includible in the decedent’s gross estate, which is
generally obtained by the public in the retail market,
the fair market value of such an item of property is
the price at which the item or a comparable item would
be sold at retail. For example, the fair market value
of an automobile (an article generally obtained by the
public in the retail market) includible in the
decedent’s gross estate is the price for which an
automobile of the same or approximately the same
description, make, model, age, condition, etc., could
be purchased by a member of the general public and not
the price for which the particular automobile of the
decedent would be purchased by a dealer in used
automobiles. * * * The value is generally to be
determined by ascertaining as a basis the fair market
value as of the applicable valuation date of each unit
of property. * * * [Sec. 20.2031-1(b), Estate Tax
Regs.]
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011