Estate of Doris F. Kahn, Deceased, LaSalle Bank, N.A., Trustee and Executor - Page 18

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          general lack of marketability discount.  Shares in a nonpublic              
          corporation suffer from lack of marketability because of the                
          absence of a private placement market and the fact that                     
          floatation costs would have to be incurred if the corporation               
          were to offer its stock publicly.  Estate of Andrews v.                     
          Commissioner, 79 T.C. at 953.  However, there are no such                   
          barriers to the disposition of assets held within the IRAs.  The            
          assets in the IRAs are traded on established markets and                    
          exchanges, unlike stock in a closely held corporation.  Although            
          the IRAs themselves are not marketable, the underlying securities           
          of the IRA are indeed marketable.  Neither the distribution of              
          the assets in the IRAs nor the payment of the tax upon                      
          distribution is a prerequisite to the marketability of the                  
          assets, as the estate implies.  Therefore, a lack of                        
          marketability discount is not warranted.  If we were to follow              
          the estate’s line of reasoning, then in any circumstance where a            
          seller recognizes gain on the disposition of an asset, the fair             
          market value of an asset would be reduced to reflect taxes                  
          attributable to the gain.  Further, as this Court observed in               
          Estate of Robinson v. Commissioner, 69 T.C. 222, 225 (1977), a              
          similar case discussed further infra, the broad ramifications of            
          such an argument--                                                          
               demonstrate its frailty.  For instance, under that                     
               approach, every determination of fair market value for                 
               estate tax purposes would require consideration of                     
               possible income tax consequences as well as a myriad of                





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