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distribution of the IRAs. A hypothetical sale between
a willing buyer and a willing seller would not trigger
the tax liability of distributing the assets in the
IRAs because the subject matter of a hypothetical sale
would be the underlying assets of the IRAs (marketable
securities), not the IRAs themselves. Further, sec.
691(c), I.R.C., addresses the potential double tax
issue. Accordingly, the valuation of the IRAs should
depend on their respective net aggregate asset values.
Held, further, a discount for lack of
marketability is not warranted because the assets in
the IRAs are publicly traded securities. Payment of
the tax upon the distribution of the assets in the IRA
is not a prerequisite to making the assets in the IRAs
marketable. Thus, there is no basis for a discount.
Jonathan E. Strouse, for petitioner.
Jason W. Anderson and Laurie A. Nasky, for respondent.
OPINION
GOEKE, Judge: This matter is before the Court on cross-
motions for summary judgment under Rule 121(a).1
Respondent issued a notice of deficiency in the Federal
estate tax of the estate of decedent Doris F. Kahn (the estate),
determining, among other adjustments, that the estate had
undervalued two IRAs on the estate’s Form 706, United States
Estate (and Generation-Skipping Transfer) Tax Return. The issue
before us is whether the estate may reduce the value of the two
IRAs included in the gross estate by the anticipated income tax
1All Rule references are to the Tax Court Rules of Practice
and Procedure, and all section references are to the Internal
Revenue Code in effect as of the date of the decedent’s death,
unless otherwise indicated.
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