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supra at 551. Fair market value is an objective test that relies
on a hypothetical buyer and seller. See Estate of Bright v.
United States, 658 F.2d 999, 1005-1006 (5th Cir. 1981); Estate of
Andrews v. Commissioner, 79 T.C. 938, 956 (1982).
A valuation analysis of property must reflect the highest
and best use to which the property could be put on the relevant
valuation date. Symington v. Commissioner, 87 T.C. 892, 896
(1986); Stanley Works & Subs. v. Commissioner, 87 T.C. 389, 400
(1986). The highest and best use is a factual issue, Symington
v. Commissioner, supra at 896; Skripak v. Commissioner, 84 T.C.
285, 320 (1985), in which we consider “‘[t]he realistic,
objective potential uses’”, Symington v. Commissioner, supra at
896-897 (quoting Stanley Works & Subs. v. Commissioner, supra at
400 (citing United States v. Meadow Brook Club, 259 F.2d 41, 45
(2d Cir. 1958))). This determination is not affected by whether
the owner has or intends to put the property to such use.
Symington v. Commissioner, supra at 897. Instead, we focus on
“The highest and most profitable use for which the property is
adaptable and needed or likely to be needed in the reasonably
near future”. Olson v. United States, 292 U.S. 246, 255-256
(1934).
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