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ownership interest in BFLP. Because the partnership interest
decedent gave to Cynthia Bongard consisted of a portion of the
property that triggered the application of section 2036(a)(1) we
find that section 2035(a) is applicable to decedent’s transfer of
the 7.72-percent limited partnership interest in BFLP. Thus,
decedent’s gross estate includes the value of the WCB Holdings
class B membership units held by BFLP on decedent’s death that is
proportionate to the 7.72-percent limited partnership interest.
V. Discounts Applicable to Decedent’s Membership Units in WCB
Holdings
The relevant part of section 2031 provides that any property
included in a decedent’s gross estate is included at its fair
market value. See also sec. 20.2031-1(b), Estate Tax Regs. The
parties stipulated that on the alternate valuation date, May 16,
1999, Empak’s stock per share value was $32.24. This was used as
the starting point by the parties to determine the value of the
decedent’s interests in WCB Holdings and BFLP and was then
decreased by stipulated discounts depending upon this Court’s
determinations regarding the application of section 2036.
We apply the discounts provided by the parties in their
stipulation of settled issues with respect to the WCB Holdings
membership units. If section 2036 was not applied to the
transfers to WCB Holdings, the parties stipulated to a 13-percent
lack of control discount and a 17.5-percent lack of marketability
discount. We are left to apply the stipulation to the value of
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