Estate of F. Wallace Langer, Deceased, Clarence D. Langer, Jr., Executor - Page 7

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          approximately 3.01 acres of Phase 5 to Gramor Langer Farms LLC              
          (Gramor).                                                                   
          C.   The Estate Tax Return                                                  
               The estate timely filed a Form 706, United States Estate               
          (and Generation-Skipping Transfer) Tax Return (the estate tax               
          return).  As reflected on the estate tax return, the estate                 
          valued LFLLC’s real property at $8,180,000 as of the date of                
          death and determined that the value of decedent’s 29.19-percent             
          interest in LFLLC, after all applicable discounts, was $837,000.            
               On April 2, 2004, respondent issued the estate a notice of             
          deficiency.  Respondent determined that decedent’s 29.19-percent            
          interest in LFLLC was $2,606,700 rather than $837,000.  In                  
          response to the notice of deficiency, the estate filed a petition           
          with this Court on June 28, 2004.                                           
                                       OPINION                                        
               For Federal estate tax purposes, property includable in the            
          gross estate is generally included at its fair market value on              
          the date of the decedent’s death.  See secs. 2031(a) and 2032(a);           
          sec. 20.2031-1(b), Estate Tax Regs.4  Fair market value is “the             
          price at which the property would change hands between a willing            
          buyer and a willing seller, neither being under any compulsion to           
          buy or to sell and both having reasonable knowledge of relevant             

               4  Unless otherwise indicated, all section references are to           
          the Internal Revenue Code, as amended, and all Rule references              
          are to the Tax Court Rules of Practice and Procedure.                       




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