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into account costs associated with zoning or decontamination.
This analysis is inapplicable to marketable securities because
they have no higher or better use. Therefore, there is no “cost”
associated with making the securities more marketable.
4. Summary
The estate has attempted to convince us that nontransferable
IRAs are similar in nature (1) to unassignable lottery payments,
(2) stock in a closely held corporation, (3) stock that is
subject to resale restrictions, (4) contaminated land, and (5)
land that needs to be rezoned to reflect the highest and best
use. We have distinguished all of these cases based on the same
common denominator--the fact that the built-in capital gains
liability and/or marketability restriction of the listed assets
will still remain in the hands of a hypothetical buyer, while in
our case, the hypothetical sale of marketable securities will not
transfer any built-in tax liability or marketability restriction
to a willing buyer.
The main problem with all of the arguments based on the
above-cited cases is that the estate is trying to draw a parallel
where one does not exist by comparing this situation to
situations where a reduction in value is appropriate because a
willing buyer would have to assume whatever burden was associated
with that property--paying taxes, zoning costs, lack of control,
lack of marketability, or resale restrictions. In this case, a
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